| Abstract: | Different economic theories suggest that residential and labor market relocations are mutually related. This has been verified in various empirical studies. We analyze this relationship based on a bivariate duration model of residential and labor market mobility. This specification is motivated by a search model that allows for simultaneous search on the labor and housing market, taking commuting costs into account. We investigate this relationship by using information on job and residence durations. In order to be able to analyze properly empirical duration data, we derive the statistical distributions of interest. Our empirical results based on a Dutch sample of full-time employed workers show that residential and labor market mobility depend positively on one another, which is in line with the theoretical search model presented. Moreover, we present easy-to-interpret measures for this dependency. |
