Are homeowners really more unemployed?

TY - JOUR

T1 - Are homeowners really more unemployed?

AU - Munch, Jakob Roland

AU - Rosholm, Michael

AU - Svarer, Michael

N1 - JEL Classification: J60, R20

PY - 2006

Y1 - 2006

N2 - This article investigates the effects of homeownership on labour mobility and unemployment duration. We distinguish between finding employment locally or being geographically mobile. We find that homeownership hampers the propensity to move for job reasons, but improves the chances of finding local jobs, which is in accordance with the predictions from our theoretical model. The overall hazard rate into employment is higher for homeowners, such that there is a negative correlation between homeownership and unemployment duration. Our empirical findings thus contradict the so-called Oswald hypothesis, even if support is found for the main mechanism behind the hypothesis, namely that homeownership hampers mobility

AB - This article investigates the effects of homeownership on labour mobility and unemployment duration. We distinguish between finding employment locally or being geographically mobile. We find that homeownership hampers the propensity to move for job reasons, but improves the chances of finding local jobs, which is in accordance with the predictions from our theoretical model. The overall hazard rate into employment is higher for homeowners, such that there is a negative correlation between homeownership and unemployment duration. Our empirical findings thus contradict the so-called Oswald hypothesis, even if support is found for the main mechanism behind the hypothesis, namely that homeownership hampers mobility

U2 - 10.1111/j.1468-0297.2006.01120.x

DO - 10.1111/j.1468-0297.2006.01120.x

M3 - Journal article

SN - 0013-0133

VL - 116

SP - 991

EP - 1013

JO - The Economic Journal

JF - The Economic Journal

IS - 514

ER -