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Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments.

Authors :
Baert, Stijn
Heylen, Freddy
Isebaert, Daan
Source :
De Economist (0013-063X); Sep2014, Vol. 162 Issue 3, p263-286, 24p
Publication Year :
2014

Abstract

This paper examines the impact of housing tenure choice on unemployment duration in Belgium using EU-SILC micro data. We contribute to the literature in distinguishing homeowners with mortgage payments and outright homeowners. Accounting for tenure endogeneity and unobserved heterogeneity, we find that homeowners with a mortgage exit unemployment first, while outright owners stay unemployed the longest. Tenants take an intermediate position. Our results emphasize the key role of housing costs in the link between housing tenure and labour market outcomes. Considered together with the results of recent macroeconomic research on housing and employment in Belgium, this paper provides indirect evidence for significant negative effects of homeownership on the labour market and the economy beyond the owners themselves. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
0013063X
Volume :
162
Issue :
3
Database :
Complementary Index
Journal :
De Economist (0013-063X)
Publication Type :
Academic Journal
Accession number :
97623498
Full Text :
https://doi.org/10.1007/s10645-014-9236-6