Behavioural change in the British housing and labour markets: an empirical analysis using panel data -PhD Thesis-
The aim of this thesis is to estimate models of 'mainstream' households which can shed light on how structural economic change and economic 'flexibility' have affected their behaviour in the housing and labour markets.
Chapter Two establishes the broader context within which the micro-analysis is carried out. Currently available evidence point towards tremendous structural change in the labour and housing markets. Family members of 'mainstream' households are encountering new opportunities and new problems over their life-cycle, and are adapting their behaviour accordingly. This chapter also identifies three topics for our empirical research.
Chapter Three briefly describes the structure of the dataset used in our analyses, the British Household Panel Survey. The main focus, however, is on outlining various solutions to the problems posed by using micro-panel data in estimation.
Chapter Four investigates the apparent change in household formation and housing tenure preferences among young people. A conditional fixed effects multinomial logit model is employed to analyse the implications of structural economic change and socio-demographic trends, in particular their disproportionate impact on young cohorts. We find that young cohorts will increasingly choose to rent privately as an alternative to owner occupation during the early stages of their life-cycle.
Chapter Five adopts a search paradigm to examine the relationship between labour and residential mobility decisions. Reduced labour turnover cost, 'flexible' employment opportunities and job uncertainty may have altered the balance of spatial adjustment. Our empirical results imply that there are now stronger incentives for men to change jobs than residences.