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A European Cross-Country Comparison of the Impact of Homeownership and Transaction Costs on Job Tenure

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  • Thomas De Graaff
  • Michiel Van Leuvensteijn

Abstract

De Graaff T. and van Leuvensteijn M. A European cross-country comparison of the impact of homeownership and transaction costs on job tenure, Regional Studies . This paper looks at the impacts across European countries of homeownership and transaction costs on job tenure. The analysis is based on a representative household sample of fourteen European countries covering the period 1994--2001. These data are merged with country-specific transaction tax data and aggregate homeownership rates. Similar to previous microeconomic studies, the results indicate that homeownership reduces job mobility as well as the probability of becoming unemployed or economically inactive. It is found, however, that this effect is severely mitigated by two factors. First, it decreases when aggregate homeownership rates are higher. Thus, homeowners have larger job tenures, but more so in countries with low homeownership rates. Second, transaction costs on the housing market are positively associated with the probability of becoming unemployed.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:9:p:1443-1461
    DOI: 10.1080/00343404.2011.626761
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    References listed on IDEAS

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    1. Aico van Vuuren & Michiel van Leuvensteijn, 2007. "The impact of homeownership on unemployment in the Netherlands," CPB Discussion Paper 86, CPB Netherlands Bureau for Economic Policy Analysis.
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    Cited by:

    1. Thomas de Graaff & Daniel Arribas-Bel & Ceren Ozgen, 2018. "Demographic Aging and Employment Dynamics in German Regions: Modeling Regional Heterogeneity," Advances in Spatial Science, in: Roger R. Stough & Karima Kourtit & Peter Nijkamp & Uwe Blien (ed.), Modelling Aging and Migration Effects on Spatial Labor Markets, chapter 0, pages 211-231, Springer.
    2. Stijn Baert & Freddy Heylen & Daan Isebaert, 2014. "Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments," De Economist, Springer, vol. 162(3), pages 263-286, September.
    3. Evert Meijers & Martijn Burger & Edward L. Glaeser & Giacomo A. M. Ponzetto & Yimei Zou, 2016. "Urban networks: Connecting markets, people, and ideas," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 17-59, March.
    4. 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.
    5. Doris Prammer, 2020. "Immovable property: where, why and how should it be taxed? A review of the literature and its implementation in Europe," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 483-504.
    6. Vives Coscojuela, Cecilia, 2018. "Housing Tenure, Geographical Mobility and the Labour Market: the Role of the Employment Exit Rate," IKERLANAK 30207, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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