Did the Post-1986 Decline in the Homeownership Rate Benefit the New Zealand Labour Market? A Spatial-Econometric Exploration
William Cochrane () and
Additional contact information
William Cochrane: University of Waikato
No 12402, IZA Discussion Papers from Institute of Labor Economics (IZA)
The proportion of New Zealand households living in owner-occupied dwellings has declined steadily since the early 1990s. The unemployment rate declined steadily as well, except for upward shifts due to the late 1990s Asian Financial Crisis and the Global Financial Crisis a decade later. Research initiated by Andrew Oswald in the 1990s posits that declining homeownership and declining unemployment are linked and that the causality runs from high homeownership leading to high unemployment. The international empirical evidence for this hypothesis is rather mixed. In this paper we revisit the issue with New Zealand census data for commuting-defined labour market areas from 1986 until 2013. Allowing for spatial spillovers in our data, we apply a general nesting spatial econometric model. We also consider the potentially different impacts of freehold and mortgaged homeownership. Generally, the evidence that a declining homeownership rate contributes to a lower unemployment is statistically fragile, but a greater prevalence of freehold ownership and mortgaged ownership below the mean across labour market areas do have small upward effects on a labour market area’s unemployment rate.
Keywords: Oswald hypothesis; unemployment; homeownership; labour market flexibility; spatial econometrics (search for similar items in EconPapers)
JEL-codes: J61 J64 R23 R31 (search for similar items in EconPapers)
Pages: 30 pages
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published - published in: Asia-Pacific Journal of Regional Science, 2020, 4 (1), 261-284
Downloads: (external link)
Journal Article: Did the post-1986 decline in the homeownership rate benefit the New Zealand labour market? A spatial-econometric exploration (2020)
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:iza:izadps:dp12402
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().