Migration, housing and regional disparities: A gravity model of inter-regional migration
with an application to selected OECD countries
Inter-regional migration – the movements of the population from one region to another
within the same country – can be an important mechanism of spatial economic adjustment,
affecting regional demographic and growth patterns. This paper examines the economic
and housing-related factors that affect the decision of people to migrate to another
region within the same country, drawing empirical evidence from country-specific gravity
models of inter-regional migration for 14 OECD countries. The results suggest that
inter-regional migrants move in search of higher income and better employment opportunities,
but are discouraged by high housing costs. In particular, house prices are found to
be an important barrier to migration, especially in countries having experienced strong
increases in the level and cross-regional dispersion of house prices. There is however
large heterogeneity across countries in terms of what factors matter the most and
in terms of the magnitude of the migration response.
Available from December 01, 2021
In series:OECD Economics Department Working Papersview more titles