Oswald's thesis posits that homeowners should have longer unemployment spells than renters due to restricted mobility, but repeatedly the reverse is found. I contribute to solve this puzzle analyzing both job search intensity and unemployment duration. First, I show that homeowner's mobility constraints have a negative impact on search. Theoretically, it is shown in a search model with moving costs. Using U.K. Labour Force Survey (LFS) data, it is confirmed when considering outright owners, while leveraged owners have the highest search. Second, I find evidence that homeowners select search methods associated with shorter unemployment spells, suggesting that they search more efficiently.

The puzzle of job search and housing tenure: A reconciliation of theory and empirical evidence

Morescalchi, Andrea
2016

Abstract

Oswald's thesis posits that homeowners should have longer unemployment spells than renters due to restricted mobility, but repeatedly the reverse is found. I contribute to solve this puzzle analyzing both job search intensity and unemployment duration. First, I show that homeowner's mobility constraints have a negative impact on search. Theoretically, it is shown in a search model with moving costs. Using U.K. Labour Force Survey (LFS) data, it is confirmed when considering outright owners, while leveraged owners have the highest search. Second, I find evidence that homeowners select search methods associated with shorter unemployment spells, suggesting that they search more efficiently.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11771/9426
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