NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Negative Equity Does Not Reduce Homeowners' Mobility

Sam Schulhofer-Wohl

NBER Working Paper No. 16701
Issued in January 2011
NBER Program(s):   EFG   PE

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.

download in pdf format
   (230 K)

email paper

This paper is available as PDF (230 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16701

Published: Sam Schulhofer-Wohl, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis. citation courtesy of

Users who downloaded this paper also downloaded these:
Ferreira, Gyourko, and Tracy w17405 Housing Busts and Household Mobility: An Update
Ferreira, Gyourko, and Tracy w14310 Housing Busts and Household Mobility
Mian, Sufi, and Trebbi w16685 Foreclosures, House Prices, and the Real Economy
Herkenhoff and Ohanian w17313 Labor Market Dysfunction During the Great Recession
Elsby, Hobijn, and Sahin w15979 The Labor Market in the Great Recession
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us