Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/106539
Authors: 
Beugnot, Julie
Lacroix, Guy
Charlot, Olivier
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8599
Abstract: 
In this paper we investigate Oswald's hypothesis according to which higher homeownership rates increase aggregate unemployment rates. To this end, we develop a matching model à la Pissarides (2000) in which homeowners are assumed to be less mobile than tenants. Based on numerical simulations, we analyze both macroeconomic and microeconomic labour market outcomes following an (exogenous) increase in homeownership rates. We show that (1) Oswald's hypothesis does not always hold as it depends crucially on the importance of mobility costs; (2) while higher homeownership may harm macroeconomic labour market performances, individual performances always improve following an increase in homeownership rates.
Subjects: 
stochastic job matching
Oswald's hypothesis
homeownership
unemployment
mobility
JEL: 
J41
J61
J64
E24
Document Type: 
Working Paper

Files in This Item:
File
Size
555.77 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.