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Home-ownership and the Labour Market: Evidence from Rental Housing Market Deregulation

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  • Jani-Petri Laamanen

    (School of Management, University of Tampere)

Abstract

Perhaps the most common finding relating housing to the labour market is that high home-ownership rates are associated with higher unemployment. In contrast, recent micro-evidence suggests that homeowners have relatively favourable labour market outcomes. We explore the effect of home-ownership on unemployment exploiting a rental housing market deregulation reform which created exogenous variation in home-ownership across regions, allowing us to avoid the endogeneity problem in earlier studies. While home-owners are less likely to experience unemployment, an increase in the home-ownership rate causes unemployment to rise. Externalities arising from consumption reductions and increased job competition may explain the conflicting evidence.

Suggested Citation

  • Jani-Petri Laamanen, 2013. "Home-ownership and the Labour Market: Evidence from Rental Housing Market Deregulation," Working Papers 1389, University of Tampere, School of Management, Economics.
  • Handle: RePEc:tam:wpaper:1389
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    File URL: http://urn.fi/URN:ISBN:978-951-44-9148-1
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    Cited by:

    1. 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.
    2. Andrea Morescalchi, 2016. "The Puzzle Of Job Search And Housing Tenure: A Reconciliation Of Theory And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 288-312, March.
    3. Gaetano Lisi, 2017. "Homeownership and entrepreneurship," Working Papers. Serie AD 2017-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. 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.
    5. Philip Arestis & Ana Rosa González-Martínez, 2015. "Is Job Insecurity a Driver of the Housing Cycle? Some Evidence in the Spanish Case," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(1), pages 1-14, March.
    6. Hana M. Broulíková & Peter Huber & Josef Montag & Petr Sunega, 2018. "Homeownership, Mobility, and Unemployment. Evidence from Housing Privatisation," WIFO Working Papers 548, WIFO.
    7. Gaetano Lisi, 2016. "Mortgage Market, Housing Tenure Choice and Unemployment," The Journal of Real Estate Finance and Economics, Springer, vol. 53(4), pages 472-493, November.
    8. Caliendo, Marco & Gielen, Anne C. & Mahlstedt, Robert, 2015. "Home-ownership, unemployed’s job search behavior and post-unemployment outcomes," Economics Letters, Elsevier, vol. 137(C), pages 218-221.
    9. Rik de Boer & Rosamaria Bitetti, 2014. "A Revival of the Private Rental Sector of the Housing Market?: Lessons from Germany, Finland, the Czech Republic and the Netherlands," OECD Economics Department Working Papers 1170, OECD Publishing.
    10. Wolf, Nikolaus & Caruana-Galizia, Paul, 2015. "Bombs, homes, and jobs: Revisiting the Oswald hypothesis for Germany," Economics Letters, Elsevier, vol. 135(C), pages 65-68.
    11. Vives Coscojuela, Cecilia, 2015. "Geographical mobility and the labour market," IKERLANAK Ikerlanak;2015-90, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    12. repec:taf:chosxx:v:32:y:2017:i:5:p:566-583 is not listed on IDEAS

    More about this item

    Keywords

    Home-ownership; unemployment;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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