Homeownership and Labour Market Outcomes: Micro versus Macro Performances

Julie Beugnot (), Guy Lacroix and Olivier Charlot

No 8599, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we investigate Oswald's hypothesis according to which higher homeownership rates increase aggregate unemployment rates. To this end, we develop a matching model ÃƒÂ la Pissarides (2000) in which homeowners are assumed to be less mobile than tenants. Based on numerical simulations, we analyze both macroeconomic and microeconomic labour market outcomes following an (exogenous) increase in homeownership rates. We show that (1) Oswald's hypothesis does not always hold as it depends crucially on the importance of mobility costs; (2) while higher homeownership may harm macroeconomic labour market performances, individual performances always improve following an increase in homeownership rates.

Keywords: homeownership; Oswald's hypothesis; stochastic job matching; unemployment; mobility (search for similar items in EconPapers)
JEL-codes: E24 J41 J61 J64 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-10
New Economics Papers: this item is included in nep-lab, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Journal of Economics, 2019, 127, 161 - 183

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