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Rent control and unemployment duration

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  • Svarer, Michael
  • Rosholm, Michael
  • Munch, Jakob Roland

Abstract

In this paper we investigate whether rent control affects the functioning of the labour market. Particularly, we focus on the effect of rent control on the length of individual unemployment duration. Theoretically, the effect is ambiguous. Rent control reduces housing mobility and could very well spill-over to mobility in the labour market. On the other hand to maintain their rent control benefits unemployed individuals are presumably less demanding when accepting a job in the local labour market. Based on a rich Danish data set we investigate the empirical contents of the issue, and find results that are in clear accordance with the theoretical predictions.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 89 (2005)
Issue (Month): 11-12 (December)
Pages: 2165-2181

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Handle: RePEc:eee:pubeco:v:89:y:2005:i:11-12:p:2165-2181

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Web page: http://www.elsevier.com/locate/inca/505578

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References

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  1. Jakob Roland Munch & Michael Svarer, . "Rent Control and Tenancy Duration," Economics Working Papers 2001-7, School of Economics and Management, University of Aarhus.
  2. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers.
  3. Anna M. Hardman & Yannis M. Ioannides, 1999. "Residential Mobility and the Housing Market in a Two-sector Neoclassical Growth Model," Discussion Papers Series, Department of Economics, Tufts University 9915, Department of Economics, Tufts University.
  4. Hans Lind, 2001. "Rent Regulation: A Conceptual And Comparative Analysis," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(1), pages 41-57, April.
  5. Arnott, Richard & Igarashi, Masahiro, 2000. "Rent control, mismatch costs and search efficiency," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 249-288, May.
  6. Alston, Richard M & Kearl, J R & Vaughan, Michael B, 1992. "Is There a Consensus among Economists in the 1990's?," American Economic Review, American Economic Association, vol. 82(2), pages 203-09, May.
  7. Edward L. Glaeser & Erzo F. P. Luttmer, 1997. "The Misallocation of Housing Under Rent Control," NBER Working Papers 6220, National Bureau of Economic Research, Inc.
  8. Richard Arnott, 1997. "Rent Control," Boston College Working Papers in Economics 391., Boston College Department of Economics.
  9. Paul Gregg & Stephen Machin & Alan Manning, 2004. "Mobility and Joblessness," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 371-410 National Bureau of Economic Research, Inc.
  10. Jensen, P. & Nielsen, M.S., 1999. "Short- and Long-Term Unemployment: How do Temporary Layoffs Affect this Distinction?," Papers 99-06, Centre for Labour Market and Social Research, Danmark-.
  11. Hans Lind, 2001. "Rent Regulation: A Conceptual And Comparative Analysis," International Journal of Housing Policy, Taylor & Francis Journals, vol. 1(1), pages 41-57.
  12. Gyourko, Joseph & Linneman, Peter, 1990. "Rent controls and rental housing quality: A note on the effects of New York City's old controls," Journal of Urban Economics, Elsevier, vol. 27(3), pages 398-409, May.
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Cited by:
  1. Dujardin, Claire & Goffette-Nagot, Florence, 2008. "Does public housing occupancy increase unemployment?," CORE Discussion Papers 2008078, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Richard Arnott & Elizaveta Shevyakhova, 2008. "Tenancy Rent Control And Credible Commitment In Maintenance," Working Papers 200812, University of California at Riverside, Department of Economics, revised Sep 2008.
  3. Duebel, Hans-Joachim & Brzeski, W. Jan & Hamilton, Ellen, 2006. "Rental choice and housing policy realignment in transition : post-privatization challenges in the Europe and Central Asia region," Policy Research Working Paper Series 3884, The World Bank.
  4. Rosholm, Michael & Svarer, Michael & Hammer, Bo, 2004. "A Danish Profiling System," IZA Discussion Papers 1418, Institute for the Study of Labor (IZA).
  5. Shing-Yi Wang, 2011. "State Misallocation and Housing Prices: Theory and Evidence from China," American Economic Review, American Economic Association, vol. 101(5), pages 2081-2107, August.
  6. Munch, Jakob R. & Rosholm, Michael & Svarer, Michael, 2006. "Home Ownership, Job Duration and Wages," IZA Discussion Papers 2110, Institute for the Study of Labor (IZA).
  7. Yuval Kantor & Peter Nijkamp & Jan Rouwendal, 2013. "Homeownership, Unemployment and Commuting Distances," Tinbergen Institute Discussion Papers 13-144/VI, Tinbergen Institute.
  8. Christian A. L. Hilber & Teemu Lyytikäinen, 2012. "The Effect of the UK Stamp Duty Land Tax on Household Mobility," SERC Discussion Papers 0115, Spatial Economics Research Centre, LSE.
  9. Morten Marott Larsen & Ninette Pilegaard & Jos van Ommeren, 2004. "Congestion and Residential Moving Behaviour," Tinbergen Institute Discussion Papers 04-096/3, Tinbergen Institute.

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