Do housing regulations affect rural-urban migration? Evidence from rent control in India

Rent control influences more than housing markets. Using India-a country with heavily regulated housing markets-as a case study, we examine how shifts from pro-tenant to pro-landlord rent control and eviction laws impact rural-urban migration and labor markets. Additionally, we explore potential mechanisms to explain our results on migration. Relaxing rent control leads to higher rents and dampens rural-urban migration, while easing eviction laws facilitates the conversion of rental units into owner-occupied housing and increases the prevalence of "marriage migrants." The impact of relaxing rent control and eviction laws on rural-urban migration is unexpected, confirming that removing one distortion from a market riddled with others can lead to surprising outcomes.