Unemployment Risk and the Timing of Homeownership in Japan

Yoko Moriizumi and Michio Naoi
Additional contact information
Yoko Moriizumi: Faculty of Economics, Kanagawa University

No 2008-026, Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program

Abstract: The effect of unemployment risk on the timing of homeownership is examined through the use of a retrospective panel of Japanese households. We obtain the following results by applying the split population duration (SPD) model: (1) unemployment risk, as proxied by the probability of unemployment, has a significantly negative effect on homeownership and delays its timing, (2) the effect of unemployment risk is overestimated in previous studies, which assume that all households will eventually become homeowners, and (3) household characteristics as well as the conditions of housing and labour markets at the early stages of a household's life cycle play an important role in the determination of its housing purchase. Finally, our simulation results indicate that an initial one-year unemployment spell will have a fairly large impact of 1.6-year delay in the timing of a subsequent home purchase.

Pages: 27 pages
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2008-026.pdf (application/pdf)

Related works:
Journal Article: Unemployment risk and the timing of homeownership in Japan (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kei:dpaper:2008-026

Access Statistics for this paper

More papers in Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program Contact information at EDIRC.
Bibliographic data for series maintained by Global COE Program Office ().