Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments
This paper examines the impact of housing tenure choice on unemployment duration in Belgium using EU‐SILC micro data. We contribute to the literature in distinguishing homeowners with mortgage payments and outright homeowners. We simultaneously estimate unemployment duration by a mixed proportional hazard model, and the probability of being an outright homeowner, a homeowner with mortgage payments or a tenant by a mixed multinomial logit model. To be able to correctly identify the causal influence of different types of housing tenure on unemployment duration, we use instrumental variables. Our results show that homeowners with a mortgage exit unemployment first. Outright owners stay unemployed the longest. Tenants take an intermediate position. Moreover, our results reveal the different share of mortgage holders within the group of homeowners as a possible explanation for the discrepancy between former contributions to this literature.
|Date of creation:||Nov 2013|
|Date of revision:|
|Publication status:||published in: De Economist, 2014, 162, 263-286, http://dx.doi.org/10.1007/s10645-014-9236-6|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Jakob Roland Munch & Michael Rosholm & Michael Svarer, 2006.
"Home Ownership, Job Duration, and Wages,"
CAM Working Papers
2006-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Munch, Jakob R. & Rosholm, Michael & Svarer, Michael, 2006. "Home Ownership, Job Duration and Wages," IZA Discussion Papers 2110, Institute for the Study of Labor (IZA).
- Jakob Roland Munch & Michael Rosholm & Michael Svarer, 2006. "Home Ownership, Job Duration, and Wages," Economics Working Papers 2006-06, School of Economics and Management, University of Aarhus.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Ernest P. Goss & Joseph M. Phillips, 1997. "The Impact of Home Ownership on the Duration of Unemployment," The Review of Regional Studies, Southern Regional Science Association, vol. 27(1), pages 9-27, Summer.
- 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.
- M. van Leuvensteijn & Pierre Koning, 2004.
"The Effect of Home-ownership on Labor Mobility in The Netherlands,"
04-01, Utrecht School of Economics.
- van Leuvensteijn, Michiel & Koning, Pierre, 2004. "The effect of home-ownership on labor mobility in the Netherlands," Journal of Urban Economics, Elsevier, vol. 55(3), pages 580-596, May.
- Blanchflower, David G. & Oswald, Andrew J., 2013.
"Does High Home-Ownership Impair the Labor Market?,"
IZA Discussion Papers
7640, Institute for the Study of Labor (IZA).
- David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," Working Paper Series WP13-3, Peterson Institute for International Economics.
- David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," NBER Working Papers 19079, National Bureau of Economic Research, Inc.
- Gaure, Simen & Roed, Knut & Zhang, Tao, 2007.
"Time and causality: A Monte Carlo assessment of the timing-of-events approach,"
Journal of Econometrics,
Elsevier, vol. 141(2), pages 1159-1195, December.
- Gaure, Simen & Røed, Knut & Zhang, Tao, 2005. "Time and Causality: A Monte Carlo Assessment of the Timing-of-Events Approach," Memorandum 19/2005, Oslo University, Department of Economics.
- Casper Ewijk & Bas Jacobs & Ruud Mooij, 2007. "Welfare Effects of Fiscal Subsidies on Home Ownership in the Netherlands," De Economist, Springer, vol. 155(3), pages 323-336, September.
- Boheim, Rene & Taylor, Mark P, 2002. "Tied Down or Rome to Move? Investigating the Relationships between Housing Tenure, Employment Status and Residential Mobility in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(4), pages 369-92, September.
- 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, . "Are Home Owners Really More Unemployed?," Economics Working Papers 2003-15, School of Economics and Management, University of Aarhus.
- Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June.
- Moriizumi, Yoko & Naoi, Michio, 2011.
"Unemployment risk and the timing of homeownership in Japan,"
Regional Science and Urban Economics,
Elsevier, vol. 41(3), pages 227-235, May.
- Yoko Moriizumi & Michio Naoi, 2008. "Unemployment Risk and the Timing of Homeownership in Japan," Keio/Kyoto Joint Global COE Discussion Paper Series 2008-026, Keio/Kyoto Joint Global COE Program.
- Aida Caldera Sánchez & Dan Andrews, 2011. "Residential Mobility and Public Policy in OECD Countries," OECD Journal: Economic Studies, OECD Publishing, vol. 2011(1), pages 1-22.
- D. Isebaert & F. Heylen & C. Smolders, 2010.
"Houses and/or jobs: ownership and the labour market in Belgian districts,"
Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium
10/695, Ghent University, Faculty of Economics and Business Administration.
- Daan Isebaert & Freddy Heylen & Carine Smolders, 2011. "Houses and/or Jobs: Ownership and the Labour Market in Belgian Districts," CESifo Working Paper Series 3371, CESifo Group Munich.
- Hughes, Gordon & McCormick, Barry, 1981. "Do Council Housing Policies Reduce Migration between Regions?," Economic Journal, Royal Economic Society, vol. 91(364), pages 919-37, December.
- Rendon Sílvio, 2006.
"Job Search And Asset Accumulation Under Borrowing Constraints ,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(1), pages 233-263, 02.
- Silvio Rendón, 2002. "Job Search And Asset Accumulation Under Borrowing Constraints," Economics Working Papers we025219, Universidad Carlos III, Departamento de Economía.
- Silvio Rendon, 2002. "Job search and asset accumulation under borrowing constraints," Economics Working Papers 649, Department of Economics and Business, Universitat Pompeu Fabra.
- Jan Rouwendal & Peter Nijkamp, 2010. "Homeownership and labour-market behaviour: interpreting the evidence," Environment and Planning A, Pion Ltd, London, vol. 42(2), pages 419-433, February.
- Hans Bloemen & Elena Stancanelli, 2001.
"Individual Wealth, Reservation Wages, and Transitions into Employment,"
Sciences Po publications
info:hdl:2441/9704, Sciences Po.
- Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
- repec:spo:wpecon:info:hdl:2441/9704 is not listed on IDEAS
- D. Isebaert, 2013. "Housing Tenure and Geographical Mobility in Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/855, Ghent University, Faculty of Economics and Business Administration.
- Harminder Battu & Ada Ma & Euan Phimister, 2008. "Housing Tenure, Job Mobility and Unemployment in the UK," Economic Journal, Royal Economic Society, vol. 118(527), pages 311-328, 03.
- Gerard J. van den Berg & Anders Holm & Jan C. van Ours, 2002. "Do stepping-stone jobs exist? Early career paths in the medical profession," Journal of Population Economics, Springer, vol. 15(4), pages 647-665.
- Hughes, Gordon & McCormick, Barry & McCormick, Barry, 1987. "Housing markets, unemployment and labour market flexibility in the UK," European Economic Review, Elsevier, vol. 31(3), pages 615-641, April.
- Casper van Ewijk & Michiel van Leuvensteijn, 2009. "Homeownership and the labour market in Europe," CPB Special Publication 79, CPB Netherlands Bureau for Economic Policy Analysis.
- Thomas De Graaff & Michiel Van Leuvensteijn, 2013. "A European Cross-Country Comparison of the Impact of Homeownership and Transaction Costs on Job Tenure," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1443-1461, October.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7774. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.