Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86405
Authors: 
Rouwendal, Jan
Nijkamp, Peter
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-047/3
Abstract: 
This paper reviews the empirical research that has been generated by Oswald’s thesis, which claims that there is a causal relationship from homeownership to unemployment. The literature confirms a decreasing effect of homeownership on geographical mobility of workers, but does not in general confirm that homeowners have longer unemployment spells or higher unemployment rates. Even though this finding is related to heterogeneity in the labour force and associated selectivity effects, there are clear indications that there is also an effect of homeownership on the search for jobs on the local labour market, especially for highly leveraged homeowners. To offer an integrated representation of the various forces at work, this paper proposes an umbrella model with endogenous search intensity that is consistent with much of the empirical evidence. In particular, it predicts lower geographical mobility of homeowners as well as higher exit rates from unemployment by acceptance of jobs on the local labour market.
Subjects: 
thesis
labour market search
homeownership
JEL: 
J61
J64
R21
R23
Document Type: 
Working Paper

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