Houses and/or Jobs: Ownership and the Labour Market in Belgian Districts

Isebaert, Daan; Heylen, Freddy; Smolders, Carine

doi:10.1080/00343404.2013.837873

Cited by 13 publications

(8 citation statements)

References 43 publications

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“…Recent macroeconomic work also confirms this. Using aggregate data of Belgian districts since 1970, Isebaert et al (2013) find strong empirical evidence in favour of the Oswald hypothesis.…”

Section: Introductionmentioning

confidence: 91%

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

2014

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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. We simultaneously estimate unemployment duration by a mixed proportional hazard model, and the probability of being an outright homeowner, a homeowner with mortgage payments or a tenant by a mixed multinomial logit model. To be able to correctly identify the causal influence of different types of housing tenure on unemployment duration, we use instrumental variables. Our results show that homeowners with a mortgage exit unemployment first. Outright owners stay unemployed the longest. Tenants take an intermediate position. Moreover, our results reveal the different share of mortgage holders within the group of homeowners as a possible explanation for the discrepancy between former contributions to this literature.JEL classification: C41, J64, R2.

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Section: Introductionmentioning

confidence: 91%

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

2014

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“…A full review of the literature on the Oswald hypothesis is beyond the scope of this paper, but it is worth noting that evidence on the Oswald hypotheses is mixed. Papers supporting the Oswald hypothesis include Pehkonen (1999), Lerbs (2011), andIsebaert et al (2015). On the other hand, Flatau et al (2003), Munch et al (2006), andValletta (2013) have results that contradict the Oswald hypothesis.…”

Section: Notementioning

confidence: 99%

Economic freedom, homeownership, and state labor market conditions

Heller

Stephenson

2015

Journal of Entrepreneurship and Public Policy

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Purpose – The purpose of this paper is to reconcile research finding that labor market outcomes are related to economic freedom for entrepreneurs and separate research finding that higher homeownership rates are associated with more unemployment. Design/methodology/approach – Using panel data covering the 50 states over 1981-2009, this paper analyzes the relationship between labor market conditions, economic freedom, and homeownership rates. Findings – The results indicate that economic freedom is associated with favorable labor market conditions but that the relationship between homeownership and poor labor market outcomes is small and insignificant in most specifications once economic freedom is accounted for. Originality/value – This paper is the first paper to examine the relationship between labor market outcomes and both homeownership and economic freedom. The results suggest that the economic environment for entrepreneurs is more important than any rigidities created by homeownership.

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“…It has been found that unemployment is higher in the regions with higher home-ownership. The most recent papers on such effects are those by Blanchflower and Oswald (2013) for the USA, Isebaert et al (2015) for Belgium, Wolf and Caruana-Galizia (2015) for Germany and Laamanen (2017) for Finland. Various studies examining the relationship between individual-level home-ownership and unemployment have found that home-owners are more successful than others in avoiding unemployment (Flatau et al , 2003; Munch et al , 2006; Van Leuvensteijn and Koning, 2004; Munch et al , 2008; Coulson and Fisher, 2009).…”

Section: Background and Literaturementioning

confidence: 99%

Externalities of home-ownership on entrepreneurship: empirical evidence

Laamanen

2019

IJHMA

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Purpose This study aims to examine the externalities from regional home-ownership to individual-level entrepreneurship. Design/methodology/approach The paper links individual-level data from the Finnish Income Distribution Statistics for years 1990-1992 to regional home-ownership proportions. Probit models of entrepreneurship with regional home-ownership and appropriate control variables as regressors are estimated. A rental housing market deregulation experiment which caused exogenous variation in regions’ home-ownership is exploited to identify the causal effects on entrepreneurship. Findings Results show that higher home-ownership in a region leads to greater entrepreneurship. Further analyses together with the fact that homeownership tends to have detrimental labour market effects suggest that homeownership encourages entrepreneurship by leading to less paid work opportunities. These results are in line with those of earlier literature that self-employment and entrepreneurship, especially during bad economic times, are partly motivated by bad employment opportunities. Originality/value This study presents novel results on the externalities that home-ownership has on entrepreneurship. These externalities are shown to be important enough that they need to be considered when assessing the economic effects of various policies that affect the prevalence of owner-occupied housing. The instrumental variables’ estimates are the first causal estimates in the literature and the bias resulting from assuming exogeneity is shown to be nonnegligible.

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Houses and/or Jobs: Ownership and the Labour Market in Belgian Districts

Cited by 13 publications

References 43 publications

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

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

Economic freedom, homeownership, and state labor market conditions

Externalities of home-ownership on entrepreneurship: empirical evidence

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