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Do homeowners stay unemployed longer ? A French micro-econometric study Les propriétaires restent-ils plus longtemps au chômage ? Une investigation micro-économétrique sur données françaises

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  • Carole Brunet

    ()
    (GATE CNRS Université Lyon 2)

  • Jean-Yves Lesueur

    ()

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    Abstract

    The objective of this paper is to provide microeconomic evidence for the so called “Oswald’s hypothesis”, which is whether homeownership results in negative outcomes in the labour market. In a first step, a multinomial logit model for the choice of tenure status is estimated. Estimated probabilities of being either homeowner, renter or housed free of charge are then used to explain the length of an individual unemployment spell. This flexible method of estimation accounts for both censoring and selection bias, without constraining the shape of the hazard rate of leaving unemployment. Results from a 3,965 individuals French data set suggest that homeownership has a positive effect on unemployment duration.

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    File URL: ftp://ftp.gate.cnrs.fr/RePEc/2003/0307.pdf
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    Bibliographic Info

    Paper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 0307.

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    Length: 21 pages
    Date of creation: Jul 2003
    Date of revision:
    Handle: RePEc:gat:wpaper:0307

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    Related research

    Keywords: duration model; job search; mobility; residential status; selectivity bias;

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    1. Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
    2. Claudie Louvot, 2001. "Le logement dans l'Union européenne : la propriété prend le pas sur la location," Économie et Statistique, Programme National Persée, vol. 343(1), pages 29-50.
    3. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
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