Housing Tenure, Job Mobility and Unemployment in the UK

Battu, Harminder; Ma, Ada; Phimister, Euan

doi:10.1111/j.1468-0297.2007.02122.x

Cited by 107 publications

(146 citation statements)

References 29 publications

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“…For example, Munch, Rosholm, and Svarer (2006) show that home-ownership in Denmark reduces job finding rates in distant labor markets but home-owners increase their employment prospects in the local labor market by setting lower reservation wages. Battu, Ma, and Phimister (2008) distinguish between private and public renting, because public rents are usually below market prices. Using data from the BHPS they find that home-ownership is a constraint for the employed, because they have a lower probability of gaining employment in more distant labor markets, while public renting is a constraint for the unemployed, because they are less likely to enter a distant job market compared to private renters.…”

Section: Previous Literaturementioning

confidence: 99%

Home-ownership, unemployed’s job search behavior and post-unemployment outcomes

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. 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.JEL Classification: J64, J61

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Section: Previous Literaturementioning

confidence: 99%

Home-ownership, unemployed’s job search behavior and post-unemployment outcomes

2015

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“…homeowners tend to find a job faster than otherwise comparable renters after they become unemployed (Munch et al, 2006 for Denmark; Battu et al, 2008 for the UK; van Vuuren, 2008 for the Netherlands).…”

Section: Introductionmentioning

confidence: 99%

Homeownership, Unemployment and Commuting Distances

2012

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“…Nevertheless, direct research into the relationship between housing tenure choice and labour market outcomes using micro data does generally not find that homeowners have worse labour market perspectives than tenants. Battu et al (2008) for example find no significant difference in the speed of transition from unemployment into employment among homeowners versus private tenants in the UK. Munch et al (2006) From a theoretical point of view, various explanations have been advanced in these and other micro studies to rationalize the better perspectives of owners on the labour market.…”

Section: Introductionmentioning

confidence: 99%

“…This paper investigates the impact of housing tenure choice on unemployment duration in Belgium, using EU-SILC micro data. Our basic research question is therefore the same as that of Munch et al (2006) and Battu et al (2008). We also follow these studies in their choice of methodology.…”

Section: Introductionmentioning

confidence: 99%

“…Our main contribution to the literature is that we distinguish different types of homeowners. Whereas Munch et al (2006) only make the broad subdivision between homeowners and non-homeowners, and Battu et al (2008) split up the second group into public and private tenants, we distinguish homeowners with mortgage payments and outright owners. For Belgium, where the rate of homeownership is close to 70%, this is clearly the most relevant distinction.…”

Section: Introductionmentioning

confidence: 99%

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Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments

2014

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This paper examines the impact of housing tenure choice on unemployment duration in Belgium using EU-SILC micro data. We contribute to the literature in distinguishing homeowners with mortgage payments and outright homeowners. We simultaneously estimate unemployment duration by a mixed proportional hazard model, and the probability of being an outright homeowner, a homeowner with mortgage payments or a tenant by a mixed multinomial logit model. To be able to correctly identify the causal influence of different types of housing tenure on unemployment duration, we use instrumental variables. Our results show that homeowners with a mortgage exit unemployment first. Outright owners stay unemployed the longest. Tenants take an intermediate position. Moreover, our results reveal the different share of mortgage holders within the group of homeowners as a possible explanation for the discrepancy between former contributions to this literature.JEL classification: C41, J64, R2.

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Housing Tenure, Job Mobility and Unemployment in the UK

Cited by 107 publications

References 29 publications

Home-ownership, unemployed’s job search behavior and post-unemployment outcomes

Home-ownership, unemployed’s job search behavior and post-unemployment outcomes

Homeownership, Unemployment and Commuting Distances

Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments

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