Unsettled: job insecurity reduces home-ownership

Anthony Lepinteur, Andrew E. Clark and Conchita D'Ambrosio

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We evaluate the link between job insecurity and one of the most-important decisions that individuals take: homeownership. The 1999 rise in the French Delalande tax on firms that laid off older workers produced an unexpected exogenous rise in job insecurity for younger workers. A difference-in-differences analysis of panel data from the European Community Household Panel shows that this greater job insecurity significantly reduced the probability of becoming a homeowner. This drop seems more attributable to individual preferences rather than greater capital constraints, consistent with individuals reducing their exposure to long-term financial commitments in more-uncertain environments.

Keywords: homeownership; job insecurity; employment protection; difference-in-differences (search for similar items in EconPapers)
JEL-codes: I38 J18 R21 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2024-06-11
New Economics Papers: this item is included in nep-ltv
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http://eprints.lse.ac.uk/126786/ Open access version. (application/pdf)

Related works:
Working Paper: Unsettled: Job insecurity reduces home-ownership (2024)
Working Paper: Unsettled: Job Insecurity Reduces Home-Ownership (2024)
Working Paper: Unsettled: Job Insecurity Reduces Home-Ownership (2024)
Working Paper: Unsettled: Job Insecurity Reduces Home-Ownership (2024)
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