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"There are a lot of economists speculating that homeowners who can't afford to pay off their mortgages are making it harder for everyone to land a good gig. These troublesome homeowners, the theory goes, can't afford to move from their low-paying second-rate job in, say, Paduka, Kentucky, to their dream gig in Walla Walla, Washington because of their burdensome housing situation. The result is a stagnant labor market where fewer jobs are opening up, and more employers are wondering why they can't find more people to fill the jobs on offer."


Not necessarily so!

 

"According to the study, in areas where housing price have fallen off a cliff, there are, as suspected, fewer people on the move within that area. However, there are also more people in those areas moving out of state in search of better jobs. The researchers conclude that this means big housing price declines actually trigger people to move further away, rather than holding them back. And Donovan, one of the study's authors, says that's a sign the economy is suffering less from "structural issues" like housing and skills mismatches and more from a lack of consumer demand due to the sluggish economy."

http://curiouscapitalist.blogs...gage-blame-your-job/

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