IDEAS home Printed from https://ideas.repec.org/a/sae/woemps/v31y2017i3p522-541.html
   My bibliography  Save this article

The shadow of future homeownership: the association of wanting to move into homeownership with labour supply

Author

Listed:
  • Philipp M Lersch

    (University of Cologne, Germany)

  • Wilfred Uunk

    (Tilburg University, the Netherlands)

Abstract

Previous research has shown that labour supply – especially of partnered women with supplemental incomes – is positively associated with homeownership status. This literature is advanced by testing whether wanting to move into homeownership before the actual entry into homeownership affects individuals’ labour supply in couples. The empirical analysis is based on longitudinal data from the British Household Panel Survey (1991–2008). Fixed-effects panel regression models are used to predict the labour supply of women and men separately. Labour supply changes associated with homeownership are found to mainly occur when individuals want to move into homeownership and prior to the actual entry into homeownership. When wanting to move into homeownership, women and men increase their labour supply, where women are more likely to take up work and men to increase work hours. For women, the association between wanting to move into homeownership and labour supply is moderated by regional house price changes.

Suggested Citation

  • Philipp M Lersch & Wilfred Uunk, 2017. "The shadow of future homeownership: the association of wanting to move into homeownership with labour supply," Work, Employment & Society, British Sociological Association, vol. 31(3), pages 522-541, June.
  • Handle: RePEc:sae:woemps:v:31:y:2017:i:3:p:522-541
    DOI: 10.1177/0950017016631443
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0950017016631443
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0950017016631443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mark Evan Edwards, 2001. "Home Ownership, Affordability, and Mothers' Changing Work and Family Roles," Social Science Quarterly, Southwestern Social Science Association, vol. 82(2), pages 369-383, June.
    2. Fortin, Nicole M, 1995. "Allocation Inflexibilities, Female Labor Supply, and Housing Assets Accumulation: Are Women Working to Pay the Mortgage?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 524-557, July.
    3. Carter, Steven, 2011. "Housing tenure choice and the dual income household," Journal of Housing Economics, Elsevier, vol. 20(3), pages 159-170, September.
    4. Jan Rouwendal, 2009. "Housing Wealth and Household Portfolios in an Ageing Society," De Economist, Springer, vol. 157(1), pages 1-48, March.
    5. Del Boca, Daniela & Lusardi, Annamaria, 2003. "Credit market constraints and labor market decisions," Labour Economics, Elsevier, vol. 10(6), pages 681-703, December.
    6. Kathleen Scanlon & Jens Lunde & Christine Whitehead, 2008. "Mortgage Product Innovation in Advanced Economies: More Choice, More Risk," International Journal of Housing Policy, Taylor & Francis Journals, vol. 8(2), pages 109-131.
    7. Kim McKee, 2012. "Young People, Homeownership and Future Welfare," Housing Studies, Taylor & Francis Journals, vol. 27(6), pages 853-862.
    8. Kathleen Scanlon & Jens Lunde & Christine Whitehead, 2008. "Mortgage Product Innovation in Advanced Economies: More Choice, More Risk," European Journal of Housing Policy, Taylor and Francis Journals, vol. 8(2), pages 109-131.
    9. Scanlon, Kathleen & Lunde, Jens & Whitehead, Christine M. E., 2008. "Mortgage product innovation in advanced economies: more choice, more risk," LSE Research Online Documents on Economics 29889, London School of Economics and Political Science, LSE Library.
    10. M. Colom & M. Molés, 2013. "Housing and labor decisions of households," Review of Economics of the Household, Springer, vol. 11(1), pages 55-82, March.
    11. Rory Coulter & Maarten van Ham & Peteke Feijten, 2011. "A Longitudinal Analysis of Moving Desires, Expectations and Actual Moving Behaviour," Environment and Planning A, , vol. 43(11), pages 2742-2760, November.
    12. Mark Stephens & Deborah Quilgars, 2008. "Sub-prime Mortgage Lending in the UK," European Journal of Housing Policy, Taylor and Francis Journals, vol. 8(2), pages 197-215.
    13. Rachel Bogardus Drew & Christopher E. Herbert, 2013. "Postrecession Drivers of Preferences for Homeownership," Housing Policy Debate, Taylor & Francis Journals, vol. 23(4), pages 666-687, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefanie Kley & Sonja Drobnič, 2019. "Does moving for family nest-building inhibit mothers' labour force (re-)entry?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(7), pages 155-184.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giulia M Dotti Sani & Claudia Acciai, 2018. "Two hearts and a loan? Mortgages, employment insecurity and earnings among young couples in six European countries," Urban Studies, Urban Studies Journal Limited, vol. 55(11), pages 2451-2469, August.
    2. John Y. Campbell, 2013. "Mortgage Market Design," Review of Finance, European Finance Association, vol. 17(1), pages 1-33.
    3. Karpestam, Peter & Johansson, Sebastian, 2019. "Interest-only-mortgages and housing market fluctuations in Denmark," Journal of Housing Economics, Elsevier, vol. 46(C).
    4. Shi, Xinyan & Riley, Sarah F., 2014. "Mortgage choice, house price externalities, and the default rate," Journal of Housing Economics, Elsevier, vol. 26(C), pages 139-150.
    5. Damen, Sven & Vastmans, Frank & Buyst, Erik, 2016. "The effect of mortgage interest deduction and mortgage characteristics on house prices," Journal of Housing Economics, Elsevier, vol. 34(C), pages 15-29.
    6. Ebner, André, 2013. "A micro view on home equity withdrawal and its determinants: Evidence from Dutch households," Journal of Housing Economics, Elsevier, vol. 22(4), pages 321-337.
    7. Irfan Ahmed & Shahid Mahmood & Umar Farooq, 2012. "Determinant Attributes of Customer Choice of Banks, Supplying Mortgage Products," Journal of Economics and Behavioral Studies, AMH International, vol. 4(5), pages 287-296.
    8. V. D’Amato & E. Lorenzo & S. Haberman & M. Sibillo & R. Tizzano, 2021. "Pension schemes versus real estate," Annals of Operations Research, Springer, vol. 299(1), pages 797-809, April.
    9. Emilia Lorenzo & Gabriella Piscopo & Marilena Sibillo & Roberto Tizzano, 2021. "Reverse mortgages through artificial intelligence: new opportunities for the actuaries," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(1), pages 23-35, June.
    10. Susan J Smith & Melek Cigdem & Rachel Ong & Gavin Wood, 2017. "Wellbeing at the edges of ownership," Environment and Planning A, , vol. 49(5), pages 1080-1098, May.
    11. Karin Haldrup, 2017. "On security of collateral in Danish mortgage finance: a formula of property rights, incentives and market mechanisms," European Journal of Law and Economics, Springer, vol. 43(1), pages 1-29, February.
    12. Gill, Balbinder Singh, 2023. "Health uninsurance premium and mortgage interest rates," International Review of Financial Analysis, Elsevier, vol. 87(C).
    13. Caroline Dewilde, 2018. "Explaining the declined affordability of housing for low-income private renters across Western Europe," Urban Studies, Urban Studies Journal Limited, vol. 55(12), pages 2618-2639, September.
    14. T. van der Valk, 2019. "Quid pro quo: the institutional environment and the allocation of household wealth," Working Papers 19-25, Utrecht School of Economics.
    15. N. Kundan Kishor & Hardik A. Marfatia, 2017. "The Dynamic Relationship Between Housing Prices and the Macroeconomy: Evidence from OECD Countries," The Journal of Real Estate Finance and Economics, Springer, vol. 54(2), pages 237-268, February.
    16. Richard Waldron & Declan Redmond, 2016. "Stress in Suburbia: Counting the Costs of Ireland's Property Crash and Mortgage Arrears Crisis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 484-501, September.
    17. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    18. David Aristei & Cristiano Perugini, 2022. "Credit and income mobility in Russia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 639-669, September.
    19. Rossi, Mariacristina & Trucchi, Serena, 2016. "Liquidity constraints and labor supply," European Economic Review, Elsevier, vol. 87(C), pages 176-193.
    20. Jeffrey R. Campbell & Zvi Hercowitz, 2005. "The Role of Collateralized Household Debt in Macroeconomic Stabilization," NBER Working Papers 11330, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:woemps:v:31:y:2017:i:3:p:522-541. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.britsoc.co.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.