Home-Ownership, Unemployed's Job Search Behavior and Post-Unemployment Outcomes

Marco Caliendo, Anne Gielen and Robert Mahlstedt ()
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Robert Mahlstedt: University of Copenhagen

No 8972, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Although home-ownership has been shown to restrict geographic labor mobility and to affect job search behavior of unemployed, there is no evidence so far on how it affects their future re-employment outcomes. We use two waves of detailed German survey data of newly unemployed individuals to study the effect of home-ownership on the job search behavior of unemployed and their re-employment outcomes. We show that unemployed who own a home are less willing to move and also less likely to apply for jobs for which one would have to move. However, we do not find any evidence for compensations of their restricted mobility by more intensive (more search channels or applications) or different (more active or informal) search behavior. Furthermore, we find that home-ownership does not seem to harm the employment prospects of the unemployed. Although the re-employment probability in the short-run is slightly lower, we find that after one year home-owning unemployed have found better re-employment jobs, in terms of wages and job satisfaction, than their renting counterparts.

Keywords: unemployment duration; job search behavior; home-ownership; search effort; reservation wage (search for similar items in EconPapers)
JEL-codes: J61 J64 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2015-04
New Economics Papers: this item is included in nep-eur, nep-hap and nep-ltv
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Citations: View citations in EconPapers (7)

Published - published in: Economics Letters, 2015, 137, 218-221

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Journal Article: Home-ownership, unemployed’s job search behavior and post-unemployment outcomes (2015)
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