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Research Paper

The Impact of Housing Market Institutions on Labour Mobility

A European Cross-Country Comparison

by Thomas de Graaff / Michiel Van Leuvensteijn
30 July 2007

The Impact of Housing Market Institutions on Labour Mobility

A European Cross-Country Comparison

Thomas de Graaff / Michiel Van Leuvensteijn

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European Network of Economic Policy Research Institutes (ENEPRI) Working Paper No. 54 / 40 pages

This paper examines the effects of housing market institutions on labour mobility. The authors construct durations for individuals leaving their current job for a different job, becoming unemployed or leaving the labour market, from a sample of households from 14 European countries in 1994-2001. This data are then merged with country-specific housing market institutions, such as transaction taxes, and language and religion diversity. Similar to previous studies, estimated hazards indicate that home-ownership reduces job-to-job mobility as well as the probability to become unemployed or economically inactive on an individual level. However, a comparison between countries reveals that countries with high levels of home-ownership rates also have high levels of unemployment. Therefore, this paper is able to reconcile the seemingly contrasting empirical results from both the macroeconomic and the microeconomic level.


About the Authors


  • Author
    Thomas de Graaff
    Thomas de Graaff
  • Author
    Michiel Van Leuvensteijn
    Michiel Van Leuvensteijn
The Impact of Housing Market Institutions on Labour Mobility A European Cross-Country Comparison
Download Publication

1569 Downloads