Hilber, Christian A. L. 
ORCID: 0000-0002-1352-495X and Lyytikäinen, Teemu
(2017)
Transfer taxes and household mobility: distortion on the housing or labor market?
Journal of Urban Economics, 101.
pp. 57-73.
ISSN 0094-1190
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Abstract
We estimate the effect of the UK Stamp Duty Land Tax (SDLT) – a transfer tax on the purchase price of property or land – on different types of household mobility using micro data. Exploiting a discontinuity in the tax schedule, we isolate the impact of the tax from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate jumps from 1 to 3 percent. We find that a higher SDLT has a strong negative impact on housing-related and short distance moves but does not adversely affect job-induced or long distance mobility. Overall, our results suggest that transfer taxes may mainly distort housing rather than labor markets.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.journals.elsevier.com/journal-of-urban... |
| Additional Information: | © 2017 Elsevier Inc. |
| Divisions: | Geography & Environment |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HN Social history and conditions. Social problems. Social reform |
| Date Deposited: | 21 Jun 2017 10:19 |
| Last Modified: | 12 Dec 2024 01:30 |
| URI: | http://eprints.lse.ac.uk/id/eprint/81872 |
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