Life Cycle Theory and the Residential Mobility of Older Canadians

This paper outlines a debate in the economics literature about the role of housing wealth in post-retirement consumption choices and provides a description of the patterns of the residential mobility, tenure, and dwelling-type transitions of older Canadians, using the newly available Statistics Canada Survey of Labour and Income Dynamics (SLID). The paper also presents estimation results for a panel data model that accounts for individual heterogeneity. The patterns of residential mobility of older adults in Canada appear to be similar to those in the United States and some European countries and do not seem to be motivated by the desire to use housing wealth for general consumption.