House Prices and Regional Labor Markets
Lancaster University - Management School; Lancaster University
Lehigh University - The Rauch Center for Business Communication
Annals of Regional Science, Vol. 33, Issue 1, 1999
This paper examines some potentially significant interactions between local housing and labor markets. We use an error correction model with equations explaining the average manufacturing wage, the unemployment rate, the labor force and the average house price in an urban area. Estimates are reported for the Hartford, Houston, Fort Lauderdale and Milwaukee areas using quarterly data for the 1980s. We find some evidence that unemployment and labor force changes affect house prices and that house prices have a significant effect on the size of the labor force.
JEL Classification: J42, R21, R31
Date posted: March 21, 1999