The Effect of Home Ownership on Inter-City and Intra-City Labor Mobility

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Table of Contents

Introduction
Factors affecting labor mobility
Home ownership and labor mobility
Other factors affecting labor mobility
Intra-city and inter-city mobility
Conclusion
Works Cited

Introduction

Labor mobility refers to a situation where those who provide labor move from one place to another (Stephen 66). It may be inter-city or intra-city. Intra-city labor mobility refers to a situation where an employee moves from one job to another within the same city. Both employment opportunities are found within the same city. On the other hand, inter-city labor mobility refers to a situation where the employees move from one job to another but in a different city. The two job opportunities are located in different cities (Gerald and Joseph 210). Mobility is determined by various factors which may affect it directly or indirectly. The workers always move to a place where the working conditions will be favorable for them. They also have a tendency to move to a place where their needs are well taken care of by the employer. The movement may also be necessitated by other factors such as employment promotions which may prompt the need to move to new locations.

Factors affecting labor mobility

Home ownership also plays an important role in determination of labor mobility. The labor mobility of the people owning homes differs from that of people who rent houses. The home owners are perceived to be more settled and of age as opposed to those who rent houses. However, research has shown that as much as home ownership has an effect on labor mobility, this effect is not that enormous. There are other factors that play a major role in the determination of labor mobility. These factors surpass the effect of home ownership. The paradigm shift is as a result of the increase in the liquidity of the homes (Lynda 156). Although the homes are perceived as valuable assets, their liquidity means that they can be sold easily and therefore someone is able to sell his/her house, move to a new location and get another house easily.

Home ownership and labor mobility

The liquidity of the houses is important as it ensures that the ownership of a house does not act as a hindrance to the mobility of labor. Initially, it was perceived that the only people who enjoyed labor mobility were those who rented houses as opposed to those who owned them. This has changed over the years as measures have been put in place to ensure that the liquidation of the assets owned by an individual is made possible. The disposal of these assets is also hastened. This liquidity has enabled home owners to even accept to move to new working environments even if the wages are lower something that those who rent houses are seen to avoid. The home owners are seen to care more about their working conditions and under most circumstances the wages they are paid are secondary to these.

Other factors affecting labor mobility

The key factors that affect the mobility of labor are discussed below. The employment state of the person being offered the job plays an important role in determining his/her mobility. If the person is unemployed and is offered a new job opportunity, the chances are high that he/she will opt to move to the new place. If the person is employed, he/she may have to look at other factors before deciding if he will move to the new place. The price of the houses in the new area where the new opportunity is available also plays an important role in determining the mobility of labor. Before a person chooses to relocate, he/she will consider the cost of selling his/her house and that of buying a new one in the new area (Craig 250). The cost of selling should be higher than that of purchase to make the relocation viable. The wages being offered at the new place of work may also play an important role in the determination of labor mobility. This however is sometimes not a major factor to consider since sometimes one may also need to consider the working conditions in the new job place. The tendency will be to move to a place that offers more wages than your current employer (Jeff 516).

Intra-city and inter-city mobility

Intra-city labor mobility is a type of mobility that is less affected by home ownership. This is because movement is within the same city and therefore the prospect of selling the house may not be a problem in this case. The houses in the same city are also almost identical and the need to relocate may not be necessary. On the other hand, inter-city mobility is mostly affected by home ownership since one has to make a decision on whether to move to the new city and sell his current house or to stay in his/her current employment.

Conclusion

From the explanations and research, it is evident that home ownership plays a role in determining labor mobility. However, the impact it has on the mobility is minimal. Other factors have to be considered before a decision is made on whether to move or not to move and though house ownership is one of them, it is not dominant. The impact which home ownership had on labor mobility has been greatly reduced by the increase in the liquidity of the houses making them easy to dispose and acquire.

Works Cited

Venezia, Craig. Buying a Second Home. New York: Atlantic publishers, 2009. Print.

Meier, M Gerald and Joseph Stiglitz. Frontiers of Development Economics. Boston: Kluwer Academic Publishers, 2001. Print.

Berner, Jeff. The Joy of Working from Home. California: Berrett-Koehler, 1994. Print.

Michaels, Lynda. The Official Guide to New Home Buying. Bloomington: Writers Club Press, 2001. Print.

Morgan, L Stephen. Mobility and Inequality. California: Stanford University Press, 2011. Print.

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