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Home Ownership, Labour Market Transitions and Earnings

Author

Listed:
  • Carole Brunet

    (carole.brunet@univ-paris8.fr)

  • Thierry Kamionka

    (kamionka@ensae.fr)

  • Guy Lacroix

    (guy.lacroix@ecn.ulaval.ca)

Abstract

The paper investigates the links between home ownership, employment and earnings. The motivation stems from the lack of consensus in the literature linking these outcomes. Our analysis is cast within a dynamic setting and the endogeneity of each outcome is assessed through the estimation of a flexible panel multivariate model with random effects. The data we use are drawn from the French sample of the EU Survey on Income and Living Conditions for the years 2004–2013. Our results show that while homeowners have longer employment and unemployment spells, they must contend with lower earnings than tenants upon reemployment. Importantly, our results highlight the importance of distinguishing between outright and indebted home owners. Indeed, the latter are found to behave more or less like tenants on the labour market. At the aggregate level, thus, the positive relationship between home ownership and unemployment rate, known as Oswald’s conjecture, might thus depend on the share of leveraged homeowners in the population.

Suggested Citation

  • Carole Brunet & Thierry Kamionka & Guy Lacroix, 2022. "Home Ownership, Labour Market Transitions and Earnings," Working Papers 2022-05, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2022-05
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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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