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Upward Mobility and the Filtering Process

University of Texas at Austin

A major revision is proposed to current em pirical theories about filtering in the hous ing market The trickle-down model is overly simplified and one-sided because it focuses only on dwelling decline There is a second process — upward mobility — that must be expressly understood. The chief advantage of the upward mobility model is that it provides a more dynamic description of households' participation in the filtering process. The article begins by reviewing theories of the filtering pro cess and then proposes a unified model emphasizing the role of upward mobility. Following this, two data sets are analyzed to discover whether upward mobility is in fact as prevalent as postulated by the unified filtering model. A major question is whether it is possible for the housing market as a whole to be characterized by upward mobility.

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