"We show that the hedging benefit of owning a home reduces the variability of housing consumption after a move. When a current home owner's house price covaries positively with housing costs in a future city, changes in the future cost of housing are offset by commensurate changes in wealth...

Labor mobility is determined by a whole set of different factors, but housing market is clearly one of the most important ones. Individuals do not make employment decisions without taking into account options of housing market. Economy constantly changes and diverse opportunities arise in...