Upjohn Institute Working Paper No. 90-01

**Published Version**

Journal of Urban Economics 32 (September 1992): 233-256




This paper examines the determinants of the decision of low-income renters to move out of their current dwelling. Maximum score estimation is shown to be superior to ordinary discrete choice estimation techniques (probit, logit) for this problem, and for similar discrete choices that require revering a previously optimal decision. The estimation reveals psychological costs from moving for typical low income renters of at least 8% of their income ; these costs are even higher for older, longer tenure, or minority households. Policies that displace low income renters will have large social costs. In addition, the estimation results are used to calculate implicit household willingness to pay (WTP) for neighborhood amenities. This WTP based on mobility behavior is much greater than WTP estimates derived using hedonic methods, and is argued to be more accurate.

Issue Date

August 1, 1990

Subject Areas

ECONOMIC DEVELOPMENT; Regional policy and planning; Urban issues




Bartik, Timothy J. , J.S. Butler, and Jin-Tan Liu. 1990. "Maximum Score Estimates of the Determinants of Residential Mobility: Implications for the Value of Residential Attachment and Neighborhood Amenities." Upjohn Institute Working Paper No. 90-01. Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.