The Role of Housing Costs in Internal Migration for Immigrants to Canada by Skill Level




Smith, Sean

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In this project, I analyze the effects of housing prices on internal migration by immigrants of different skill levels in Canada over the 2009 to 2019 period. Endogeneity arising from the simultaneity between housing costs and immigration introduces difficulty to attempts to model their relationship. To account for this endogeneity, I utilize a two-stage least-squares model with fixed effects to analyze housing’s impacts on immigration. Preliminary results from this analysis suggest that rising housing costs in a region produce a strong negative effect on immigrant retention and migration into that region. These results are inconclusive, however, as even though housing costs have an expected negative effect, effect sizes are improbably large. Further research may pursue producing better estimates for housing’s impacts on immigration and estimating possible consequences for regional labour markets experiencing rising housing costs.



Regional economics, Economics, Canada, Housing, Immigration