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The impact of housing market institutions on labour mobility; a European cross-country comparison

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  • Michiel van Leuvensteijn
  • Thomas de Graaff

Abstract

In this paper, we study the effects of housing market institutions on labour mobility. We construct durations for individuals leaving their current job for a different job, becoming unemployed or leaving the labour market, from a sample of households from 14 European countries in 1994–2001. In this paper, we study the effects of housing market institutions on labour mobility. We construct durations for individuals leaving their current job for a different job, becoming unemployed or leaving the labour market, from a sample of households from 14 European countries in 1994–2001. We merge this data with country specific housing market institutions, such as transaction taxes, and language and religion diversity. Similar to previous studies, estimated hazards indicate that home-ownership reduces job-to-job mobility as well as the probability to become unemployed or economically inactive on a individual level. However, a comparison between countries reveals that countries with high levels of homeownership rates also have high levels of unemployment. Therefore, this paper is able to reconcile the seemingly contrasting empirical results from both the macroeconomic and the microeconomic level.

Suggested Citation

  • Michiel van Leuvensteijn & Thomas de Graaff, 2007. "The impact of housing market institutions on labour mobility; a European cross-country comparison," CPB Discussion Paper 82, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:82
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    Citations

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    Cited by:

    1. Andrea Morescalchi, 2016. "The Puzzle Of Job Search And Housing Tenure: A Reconciliation Of Theory And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 288-312, March.
    2. Nathalie Havet & Alexis Penot, 2010. "Does Home ownership Harm Labour Market Performances? A Survey," Post-Print halshs-00491074, HAL.
    3. Nathalie Havet & Carole Brunet, 2009. "Propriété immobilière et déqualifications dans l'emploi," Revue Française d'Économie, Programme National Persée, vol. 24(1), pages 121-155.
    4. Ch.-M. CHEVALIER & R. LARDEUX, 2017. "Homeownership and labor market outcomes: disentangling externality and composition effects," Documents de Travail de l'Insee - INSEE Working Papers g2017-09, Institut National de la Statistique et des Etudes Economiques.
    5. Carole Brunet & Nathalie Havet, 2020. "Homeownership and job-match quality in France," Housing Studies, Taylor & Francis Journals, vol. 35(5), pages 925-953, May.

    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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