The Decision Of Our Final Residential Location Choice Model

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Before the decision of our final residential location choice model, we tested how preferences of residential location are different among age and income groups. Stratifying the sample of households by age and income is helpful to identify some of the heterogeneity in housing preferences among different market segments as well as investigate whether differences of location preferences exist between different groups. All the household location choice models performed reasonably well as shown in table 1, 2, and 3. The empirical results show that different age groups have different residential location preferences. As shown in Table 1, the access to employment is statistically significant and positive in Groups 1 and 3 but insignificant in Group 2. This result implies that job opportunity is an important factor in the household residential location choice decision, especially for the young and old household groups. On the other hand, households in Group 2 do not tend to prefer the location where job opportunity is relatively good, although it is not statistically significant. Rather, land price is positive and significant in Group 2, which means they are likely to choose the location where land price is high. This may be because most households in Group 2 consider their children’s education in their residential location decision. In specific, good education environment including public and private schools is a very important factor in Korea. However, we do not include the
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