Job protection and mortgage conditions: Evidence from Italian administrative data
Paolo Emilio Mistrulli (),
Zeno Rotondi () and
Alberto Zazzaro ()
Additional contact information
Zeno Rotondi: UniCredit, CERBE and MoFiR
No 173, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences
In this paper we combine administrative data from the Italian National Institute for Social Security and proprietary data from a major Italian commercial bank to analyse the impact of job protection legislation on mortgage conditions. An exogenous change in the degree of job protection against individual dismissals of workers with open-ended contracts is identified by exploiting the 2015 Labor market reform, the so-called Jobs Act, which reduced employment protection of newly hired employees in medium and large private firms. We find that the weaker job security induced by the 2015 legislation change leads to a lower mortgage amount and a lower leveraging capacity, as measured by the loan-to-value ratio. Furthermore, the effect of job insecurity is mitigated by the presence of co-mortgagors while it is amplified for young and low-income mortgagors.
Keywords: Employment protection law; job stability; mortgage market (search for similar items in EconPapers)
JEL-codes: C21 G21 G51 J41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir173.pdf First version, 2022 (application/pdf)
Working Paper: Job Protection and Mortgage Conditions: Evidence from Italian Administrative Data (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:anc:wmofir:173
Access Statistics for this paper
More papers in Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Maurizio Mariotti ().