Hilber, Christian A. L. 
ORCID: 0000-0002-1352-495X and Lyytikainen, Teemu
(2017)
Transfer taxes and household mobility: distortion on the housing or labor market?
SERC Discussion Papers (SERCDP0216).
Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.
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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: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.spatialeconomics.ac.uk/ |
| Additional Information: | © 2017 The Authors |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance |
| Subjects: | H Social Sciences > HG Finance |
| Date Deposited: | 24 Jul 2017 08:22 |
| Last Modified: | 11 Dec 2024 19:25 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/83639 |
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