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Negative home equity and job mobility

Author

Listed:
  • Sander van Veldhuizen
  • Bart Voogt
  • Benedikt Vogt

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Andrea Morescalchi

    (JRC)

Abstract

We investigate the impact of negative home equity on job mobility. Panel fixed effects estimation is carried out by making use of Dutch administrative panel in the period 2006-2011. To control for self-selection into negative home equity, we consider homeowners who fall into negative home equity because of an exogenous price decline in their house. We compare them to homeowners with positive equity. Negative home equity has a moderate negative effect on the probability to switch jobs. If a household plunges into negative home equity, then the head of the household is about 5.2% less likely to switch jobs. Read also: Discussion Paper 323 'Negative Home Equity and Household Mobility: Evidence from Administrative Data'.

Suggested Citation

  • Sander van Veldhuizen & Bart Voogt & Benedikt Vogt & Andrea Morescalchi, 2017. "Negative home equity and job mobility," CPB Discussion Paper 345, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:345
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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