Unsettled: Job insecurity reduces home-ownership

Andrew Clark, Conchita D'Ambrosio and Anthony Lepinteur

CEP Discussion Papers from Centre for Economic Performance, LSE

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)
Date: 2024-06-11
New Economics Papers: this item is included in nep-ltv
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https://cep.lse.ac.uk/pubs/download/dp2006.pdf (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)
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