Negative Equity Does Not Reduce Homeowners' Mobility

21 Pages Posted: 19 Jan 2011 Last revised: 19 Feb 2023

See all articles by Sam Schulhofer-Wohl

Sam Schulhofer-Wohl

Federal Reserve Banks - Federal Reserve Bank of Dallas; Federal Reserve Bank of Chicago

Date Written: January 2011

Abstract

Some commentators have argued that the housing crisis may harm labor markets because homeowners who owe more than their homes are worth are less likely to move to places that have productive job opportunities. I show that, in the available data, negative equity does not make homeowners less mobile. In fact, homeowners who have negative equity are slightly more likely to move than homeowners who have positive equity. Ferreira, Gyourko and Tracy's (2010) contrasting result that negative equity reduces mobility arises because they systematically drop some negative-equity homeowners' moves from the data.

Suggested Citation

Schulhofer-Wohl, Sam, Negative Equity Does Not Reduce Homeowners' Mobility (January 2011). NBER Working Paper No. w16701, Available at SSRN: https://ssrn.com/abstract=1743320

Sam Schulhofer-Wohl (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

HOME PAGE: http://sschulh1.wordpress.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
40
Abstract Views
1,773
PlumX Metrics