Housing markets may significantly affect the relationship between regional population and employment, if housing supply is not fully accommodative to demand. We analyse the relationships between housing supply, regional population and employment empirically in a three-equation dynamic model....

Transaction costs have attracted considerable attention in the theoretical literature on residential mobility. In many European countries, these costs mainly consist of ad-valorem transaction costs. In the current paper, we demonstrate empirically for the Netherlands that the transaction costs...

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesise that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment...