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Unsettled: Job Insecurity Reduces Home-Ownership

Author

Listed:
  • Lepinteur, Anthony

    (University of Luxembourg)

  • Clark, Andrew E.

    (Paris School of Economics)

  • D'Ambrosio, Conchita

    (University of Luxembourg)

Abstract

We here evaluate the link between job insecurity and one of the most-important decisions that individuals take: homeownership. The 1999 rise in the French Delalande tax on firms that laid off older workers produced an unexpected exogenous rise in job insecurity for younger workers. A difference-in-differences analysis of panel data from the European Community Household Panel shows that this greater job insecurity significantly reduced the probability of becoming a homeowner. This drop seems more attributable to individual preferences rather than greater capital constraints, consistent with individuals reducing their exposure to long-term financial commitments in more-uncertain environments.

Suggested Citation

  • Lepinteur, Anthony & Clark, Andrew E. & D'Ambrosio, Conchita, 2024. "Unsettled: Job Insecurity Reduces Home-Ownership," IZA Discussion Papers 17038, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17038
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    Keywords

    homeownership; job insecurity; employment protection; difference-in-differences;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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