Home Ownership, Labour Market Transitions and Earnings

Carole Brunet, Thierry Kamionka and Guy Lacroix
Additional contact information
Thierry Kamionka: kamionka@ensae.fr

No 2022-05, Working Papers from Center for Research in Economics and Statistics

Abstract: The paper investigates the links between home ownership, employment and earnings. The motivation stems from the lack of consensus in the literature linking these outcomes. Our analysis is cast within a dynamic setting and the endogeneity of each outcome is assessed through the estimation of a flexible panel multivariate model with random effects. The data we use are drawn from the French sample of the EU Survey on Income and Living Conditions for the years 2004–2013. Our results show that while homeowners have longer employment and unemployment spells, they must contend with lower earnings than tenants upon reemployment. Importantly, our results highlight the importance of distinguishing between outright and indebted home owners. Indeed, the latter are found to behave more or less like tenants on the labour market. At the aggregate level, thus, the positive relationship between home ownership and unemployment rate, known as Oswald’s conjecture, might thus depend on the share of leveraged homeowners in the population.

Keywords: Home Ownership; Unemployment; Earnings; Heterogeneity; Simulation base destimation; Paneldata (search for similar items in EconPapers)
JEL-codes: C33 C35 J21 J31 J64 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2022-03-14
New Economics Papers: this item is included in nep-eur, nep-lma and nep-ure
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http://crest.science/RePEc/wpstorage/2022-05.pdf CREST working paper version (application/pdf)

Related works:
Working Paper: Homeownership, Labour Market Transitions and Earnings (2021)
Working Paper: Homeownership, Labour Market Transitions and Earnings (2018)
Working Paper: Homeownership, Labour Market Transitions and Earnings (2018)
Working Paper: Homeownership, Labour Market Transitions and Earnings (2018)
Working Paper: Homeownership, Labour Market Transitions and Earnings (2018)
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