Labor mobility is determined by a wholeset of different factors, but housing market is clearly oneof the most important ones. Individuals do not makeemployment decisions without taking into account options ofhousing market. Economy constantly changes and diverseopportunities arise in different locations at differentpoints of time. Badly functioning housing market can causelow labor mobility and restrain the ability of employers tomatch vacancies in specific locations. The issue of labormobility is especially vital for developing countries.Synovate, a global marketing research company, conductedsurvey of labor mobility in Russia, Ukraine, Bulgaria andSerbia (Synovate, 2010). Results of the survey showedextremely low desire to relocate in Russia and Ukraine. Ifoffered 1.5 times increase in salary, around 80 percent ofrespondents in Russia and Ukraine would still refuse torelocate, though in Bulgaria and Serbia only 50 percent ofrespondents would not change their location on thisconditions. Moreover, imperfections in housing market werementioned in this survey as one of the main reasons for lowmobility in Russia and Ukraine. Different characteristics ofhousing market that can influence labor mobility arediscussed in this report.
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