Home Ownership As a Labor Market Friction PDF Download

Author: Daniel Ringo
Publisher:
ISBN:
Category :
Languages : en
Pages : 35

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Book Description
This paper estimates the effect of home ownership on individuals' unemployment. Because of higher moving costs, home owners will be less willing than renters to re- locate for work and could therefore face longer unemployment spells. Estimation is complicated by the endogeneity of ownership, as owners will have different abilities, preferences and job prospects than renters. I instrument for home ownership using a preference shifter from the worker's childhood environment. The results indicate that home ownership is a significant hindrance to mobility, and homeowners suffer longer unemployment spells and more frequent job loss because of it.

Author: David G. Blanchflower
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 30

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Book Description
We explore the hypothesis that high home-ownership damages the labor market. Our results are relevant to, and may be worrying for, a range of policy-makers and researchers. We find that rises in the home- ownership rate in a U.S. state are a precursor to eventual sharp rises in unemployment in that state. The elasticity exceeds unity: a doubling of the rate of home-ownership in a U.S. state is followed in the long-run by more than a doubling of the later unemployment rate. What mechanism might explain this? We show that rises in home-ownership lead to three problems: (i) lower levels of labor mobility, (ii) greater commuting times, and (iii) fewer new businesses. Our argument is not that owners themselves are disproportionately unemployed. The evidence suggests, instead, that the housing market can produce negative 'externalities' upon the labor market. The time lags are long. That gradualness may explain why these important patterns are so little-known.

Author: Andrea Camilli
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Institut national de la statistique et des études économiques (France)
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Yuval Kantor
Publisher:
ISBN:
Category :
Languages : en
Pages :

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According to Oswald's hypothesis homeowners experience more problems in finding a new job after becoming unemployed because their moving costs are higher than those of renters. Empirical research has revealed that this effect is counteracted by the job search behavior of unemployed homeowners: they accept a job on the local labor market, that is, a job that does not force them to move to a different residential location, more frequently than unemployed renters. One possible explanation of this result is that the local labor market is larger for homeowners than for renters, in the sense that they are willing to accept longer commutes. This suggests that the longer commutes of homeowners (a well known empirical fact) are partly caused by higher moving costs. In this paper we analyze the validity of this explanation by investigating the relationship between homeownership and commutes while controlling for other variables, and possible effects of selection and heterogeneity.

Author: Karin Kurz
Publisher: Stanford University Press
ISBN: 0804767246
Category : Business & Economics
Languages : en
Pages : 408

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This cross-national comparative study analyzes the relationship between social inequality and the attainment of home ownership over the life course in 12 countries.

Author: George Mawuli- Akpandjar
Publisher:
ISBN:
Category :
Languages : en
Pages : 128

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Book Description
This dissertation consists of three papers on the effect of homeownership on labor market outcomes. In the first paper, I developed a one-sector two-region endogenous job search model and show that when jobs arrive from both local labor market and non-local labor market, homeowners: are less likely to be unemployed than renters; and have higher overall search intensity and exit rate than renters. I then estimate the effect of homeownership on unemployment using a panel data set aggregated from the American Community Survey data from 2003 to 2011 and use relative cost of owning a home as instrument for homeownership. I also estimate models at the individual level. Regression results show that homeownership is negatively and significantly related to unemployment confirming the theoretical predictions. These results are robust to different estimation methods and specifications. The second paper evaluates the effect of homeownership on unemployment spell using the March Current Population Survey (CPS) data 1990 to 2013. Using duration models, I find that when transition from unemployment to different types of employment (full time and part-time) is ignored, homeownership decreases the probability of exiting unemployment. However, when the transition to different types of employment is considered, homeowners compared to renters have a lower probability of exit into full-time employment but have a higher probability of exit into part-time employment. Results from competing risk models when the transition into full-time and part-time employments are modeled simultaneously also exhibit similar patterns. The final paper investigates job search intensity by unemployed homeowners and renters in the US using the American Time Use Survey (ATUS) data from 2003 to 2013. I use Ordinary Least Squares and two-limit Tobit methods to estimate my models. The findings from regression results across different specifications of the two models estimated using the full sample shows that, on average, homeowners search for jobs less intensively compared to renters. However, when the sample is disaggregated into different unemployed groups, I find that while job losers and temporary layoff homeowners search for jobs more intensively than renters, homeowners who are re-entrant and job leavers search for jobs less intensively than renters.

Author: Štěpán Mikula
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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We study whether homeownership hinders labor force participation and increases unemployment. Using a unique dataset from the city of Brno, Czech Republic, we exploit housing reforms that followed the Velvet Revolution, and the subsequent fall of communism, as a source of exogenous assignment of homeownership. Across several estimation approaches, we do not find any evidence of homeownership hindering labor market activity. The estimated effects on labor force participation are around zero and our estimates for unemployment suggest that homeownership reduces it by four to six percentage points. Homeownership thus appears to benefit labor market perfomance.

Author:
Publisher:
ISBN:
Category : Home ownership
Languages : en
Pages : 68

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Author: Nicolas P. Retsinas
Publisher: Brookings Institution Press
ISBN: 0815706030
Category : Political Science
Languages : en
Pages : 512

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Book Description
A Brookings Institution Press and Harvard University Joint Center for Housing Studies publication A generation ago little attention was focused on low-income homeownership. Today homeownership rates among under-served groups, including low-income households and minorities, have risen to record levels. These groups are no longer at the margin of the housing market; they have benefited from more flexible underwriting standards and greater access to credit. However, there is still a racial/ethnic gap and the homeownership rates of minority and low-income households are still well below the national average. This volume gathers the observations of housing experts on low-income homeownership and its effects on households and communities. The book is divided into five chapters which focus on the following subjects: homeownership trends in the 1990s; overcoming borrower constraints; financial returns to low-income homeowners; low-income loan performance; and the socioeconomic impact of homeownership.