The impact of homeownership on unemployment in the Netherlands
We analyze the impact of homeownership on unemployment duration using a theoretical model of job search. Earlier studies suggest that this relationship should be positive because workers are less mobile when they own a home. Nevertheless, most of the empirical studies in Europe find an opposite relationship. In this paper, we investigate whether this is due to an omission in the original analysis or whether it is due to an endogeneity problem, i.e. those who can leave unemployment easily are more likely to be a homeowner. In our empirical analysis, we use additional information about the differences in unemployment benefits between homeowners and renters. We find that homeowners have higher hazard rates out of unemployment to a job in the local labour market. The impact is significant but not very large. Homeownership has a negative but insignificant impact on the hazard to leave unemployment to the non-local labour market. Finally, we find that homeowners would reduce their probability to receive a job offer from the local labour market when they become renters. The probability to receive a job offer from the non-local labour market would increase for short spells of unemployment when home owners become renters. However, this probability would be reduced for long spells of unemployment.
|Date of creation:||Aug 2007|
|Contact details of provider:|| Postal: Postbus 80510, 2508 GM Den Haag|
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van den Berg, Gerard J & Gorter, Cees, 1997.
"Job Search and Commuting Time,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 15(2), pages 269-281, April.
- Gerard J. van den Berg, 1990.
"Nonstationarity in Job Search Theory,"
Review of Economic Studies,
Oxford University Press, vol. 57(2), pages 255-277.
- Munch, Jakob R. & Rosholm, Michael & Svarer, Michael, 2003.
"Are Home Owners Really More Unemployed?,"
IZA Discussion Papers
872, Institute for the Study of Labor (IZA).
- Michael Svarer & Michael Rosholm & Jacob Roland Munch, 2003. "Are Home Owners Really more Unemployed?," CAM Working Papers 2003-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Munch, Jakob Roland & Rosholm, Michael & Svarer, Michael, "undated". "Are Home Owners Really More Unemployed?," Economics Working Papers 2003-15, Department of Economics and Business Economics, Aarhus University.
- Bo E. Honoré, 1993. "Identification Results for Duration Models with Multiple Spells," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 241-246.
- Frijters, Paul & van der Klaauw, Bas, 2003.
"Job Search with Nonparticipation,"
CEPR Discussion Papers
3922, C.E.P.R. Discussion Papers.
- Frijters, Paul & van der Klaauw, Bas, 2004. "Job Search with Nonparticipation," IZA Discussion Papers 1407, Institute for the Study of Labor (IZA).
- Paul Frijters & Bas van der Klaau, 2003. "Job Search with Nonparticipation," Paul Frijters Discussion Papers 2003-3, School of Economics and Finance, Queensland University of Technology.
- Paul Frijters & Bas van der Klaauw, 2003. "Job Search with Nonparticipation," School of Economics and Finance Discussion Papers and Working Papers Series 168d, School of Economics and Finance, Queensland University of Technology.
- van den Berg, Gerard J, 1992. "A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job," Economic Journal, Royal Economic Society, vol. 102(414), pages 1116-1133, September.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.