Homeownership and the labour market in Europe
AbstractIncreasing labour market flexibility is at the top of the European agenda. A new and challenging view is a lack of mobility in the labour market may arise from rigidities in the housing market. The research in this book has been inspired by the intriguing hypothesis put forward by Andrew Oswald that homeownership may be a hindrance to the smooth working of the labour markets, as homeowners tend to be less willing to accept jobs outside their own region. This book brings together leading economists from across Europe to analyse the interaction between housing markets and labour markets. In the EU homeownership rates have been on the increase, often as a result of government policies, making the barriers that homeownership creates in terms of labour mobility increasingly important. This book shows on the one hand, at the individual level, that homeownership limits the likelihood of becoming unemployed and increases the probability of finding a job once unemployed. On the other hand, the transaction costs inherent in the housing market and homeownership hamper job-to-job changes and increase unemployment at the country level. This insight provides a clear policy message to European policymakers: reform in the housing market, aimed at lowering transaction costs and providing less generous subsidies for homeowners could be an effective instrument for reducing unemployment and improving labour market flexibility. This publication is not online available. Order this publication at Oxford University Press .�
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Bibliographic InfoPaper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Special Publication with number 79.
Date of creation: Apr 2009
Date of revision:
Find related papers by 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-EEC-2009-07-28 (European Economics)
- NEP-LAB-2009-07-28 (Labour Economics)
- NEP-URE-2009-07-28 (Urban & Real Estate Economics)
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- Baert, Stijn & Heylen, Freddy & Isebaert, Daan, 2013.
"Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments,"
IZA Discussion Papers
7774, Institute for the Study of Labor (IZA).
- S. Baert & F. Heylen & D. Isebaert, 2013. "Does homeownership lead to longer unemployment spells? The role of mortgage payments," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/858, Ghent University, Faculty of Economics and Business Administration.
- Rodríguez Hernández, José E. & Barrios García, Javier A., 2012. "¿Incide la forma de tenencia de la vivienda habitual sobre la situación de empleo en España?/Does the Housing Tenure Choice Affect the Employment Situation in Spain?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 751 (22 pag, Agosto.
- Lerbs, Oliver, 2010. "Is there a link between home ownership and unemployment levels? Evidence from German regional data," CAWM Discussion Papers 34, Center of Applied Economic Research Münster (CAWM), University of Münster.
- Oliver Lerbs, 2011. "Is there a link between homeownership and unemployment? Evidence from German regional data," International Economics and Economic Policy, Springer, vol. 8(4), pages 407-426, December.
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