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Rent Control and Unemployment Duration

Michael Svarer (), Michael Rosholm () and Jakob Munch

No 842, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we investigate whether rent control affects the functioning of the labour market. Particularly, we focus on the effect of rent control on the length of individual unemployment duration. Theoretically, the effect is ambiguous. Rent control reduces housing mobility and could very well spill-over to mobility in the labour market. On the other hand to maintain their rent control benefits unemployed individuals are presumably less demanding when accepting a job in the local labour market. Based on a rich Danish data set we investigate the empirical contents of the issue, and find results that are in clear accordance with the theoretical predictions.

Keywords: search model; unemployment duration; rent control (search for similar items in EconPapers)
JEL-codes: C41 J61 J64 D45 L51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ure
Date: 2003-08
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Published in: Journal of Public Economics, 2005, 89 (11-12), 2165-2181

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Journal Article: Rent control and unemployment duration (2005) Downloads
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