Working Paper: CEPR ID: DP13615
Authors: Konstantin Buechel; Maximilian V. Ehrlich; Diego Puga; Elisabet Viladecans-Marsal
Abstract: Using anonymised cellphone data, we study the role of social networks in residential mobility decisions. Individuals with few local contacts are more likely to change residence. Movers strongly prefer places with more of their contacts close-by. Contacts matter because proximity to them is itself valuable and increases the enjoyment of attractive locations. They also provide hard-to-find local information and reduce frictions, especially in home-search. Local contacts who left recently or are more central are particularly influential. As people age, proximity to family gains importance relative to friends.
Keywords: social networks; residential mobility; cellphone data
JEL Codes: R23; L14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Number of nearby contacts (D85) | Likelihood of changing residence (R23) |
| Each additional contact residing within 10 minutes of current home (R21) | Probability of moving (C69) |
| Local contacts (Y80) | Moving costs (R21) |
| Local contacts (Y80) | Search frictions during home search (R21) |
| Local information from contacts (Y91) | Attractiveness of potential new locations (R32) |
| Second-order contacts (C69) | Information exchange for residential mobility (R23) |
| Age (J14) | Importance of proximity to family (J12) |
| Age (J14) | Importance of proximity to friends (C92) |