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User Cost Changes, Unemployment and Home-ownership: Evidence from Spain

Author

Listed:
  • Javier A. Barrios Garcia

    (Departamento de Economía Aplicada, Facultad de CC. EE. y Empresariales, Universidad de la Laguna, Campus de Guajara, sln. 38071, Tenerife, Canary Islands, Spain, jabarrio@ull.es)

  • Jose E. Rodriguez Hernandez

    (Departamento de Economía Aplicada, Facultad de CC. EE. y Empresariales, Universidad de la Laguna, Campus de Guajara, sln. 38071, Tenerife, Canary Islands, Spain, jerodri@ull.es)

Abstract

This paper develops a macroeconomic model that permits analysis of the relationship between unemployment and home-ownership rates using aggregate data at the provincial level within Spain, besides other influential variables such as the changes of the relative user costs of owning and renting or household life-cycle attributes. The model constructed permits the authors to question the evidence of Oswald, Nickell and Layard, and partially of Green and Hendershott, that home-ownership leads to higher unemployment. The results point out that, taking into account the simultaneity determination issue and reducing the omitted variable bias, a higher unemployment discourages home-ownership.

Suggested Citation

  • Javier A. Barrios Garcia & Jose E. Rodriguez Hernandez, 2004. "User Cost Changes, Unemployment and Home-ownership: Evidence from Spain," Urban Studies, Urban Studies Journal Limited, vol. 41(3), pages 563-578, March.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:3:p:563-578
    DOI: 10.1080/0042098042000178681
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    References listed on IDEAS

    as
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    Cited by:

    1. 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 Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 751(22)-751, Agosto.
    2. Rodriguez, J. & Barrios, J., 2004. "Politica fiscal de vivienda en España y forma de tenencia de la vivienda habitual: una valoracion empirica a nivel provincial," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 4(2).
    3. Oliver W. Lerbs & Christian A. Oberst, 2014. "Explaining the Spatial Variation in Homeownership Rates: Results for German Regions," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 844-865, May.
    4. Coulson, N. Edward & Fisher, Lynn M., 2009. "Housing tenure and labor market impacts: The search goes on," Journal of Urban Economics, Elsevier, vol. 65(3), pages 252-264, May.
    5. Yang, Xi, 2019. "The effects of home ownership on post-unemployment wages," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 1-17.
    6. Gaetano Lisi, 2017. "Homeownership and new entrepreneurs: first empirical evidence of a bidirectional interaction," Applied Economics, Taylor & Francis Journals, vol. 49(60), pages 5983-5991, December.
    7. Lerbs, Oliver, 2010. "Is there a link between home ownership and unemployment levels? Evidence from German regional data," CAWM Discussion Papers 34, University of Münster, Münster Center for Economic Policy (MEP).

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