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Has making it harder to move from the North to London made the North less productive? It may seem paradoxical, but the answer is yes.https://www.adamsmith.org/blog/regional-inequality-also-a-housing-supply-problem-1 …
Why is this? @bswud explains:
"Restrictive housing supply, which raises rents (and house prices), deters low-skilled movers much more than high-skilled movers, raising the average talent in the host city and cutting it in the sending city."
He cites a study looking at lawyers and janitors moving from the Deep South to New York. As rents have increased it is no longer worth it for janitors to move North, but it is still worth it for lawyers.pic.twitter.com/Q7Xn43JtsM
Why does this matter? One view argues the solution to regional inequality is greater investment in skills in poorer regions. It looks like the government accept this argument. https://www.theguardian.com/politics/2020/jan/30/sajid-javid-to-focus-on-skills-in-budget-to-hold-on-to-ex-labour-seats …pic.twitter.com/M7fTdZRxOf
But if high rents continue to drive skill-biased migration south then greater investment in skills, while beneficial to some, won't reduce regional disparities. After all, you can't tie workers to their region after you've trained them
If you're aiming for a more even distribution of skills-mix across the UK and in turn reversing regional decline, then the solution is to tackle the self-inflicted housing shortage.https://www.adamsmith.org/research/yimby
The good news is the late Sir Roger Scruton may have found a politically-viable way forward.https://www.conservativehome.com/localgovernment/2020/01/ben-southwood-scrutons-final-gift-a-way-to-ensure-new-buildings-are-beautiful.html …
How does a lawyer moving to London make a cleaner who doesn't move to London less productive?
Read again. That's not what was written.
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