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Unsettled: Job insecurity reduces home-ownership

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Listed:
  • Andrew E. Clark
  • Conchita D'Ambrosio
  • Anthony Lepinteur

Abstract

We evaluate the link between job insecurity and one of the most-important decisions that individuals take: homeownership. The 1999 rise in the French Delalande tax on firms that laid off older workers produced an unexpected exogenous rise in job insecurity for younger workers. A difference-in-differences analysis of panel data from the European Community Household Panel shows that this greater job insecurity significantly reduced the probability of becoming a homeowner. This drop seems more attributable to individual preferences rather than greater capital constraints, consistent with individuals reducing their exposure to long-term financial commitments in more-uncertain environments.

Suggested Citation

  • Andrew E. Clark & Conchita D'Ambrosio & Anthony Lepinteur, 2024. "Unsettled: Job insecurity reduces home-ownership," CEP Discussion Papers dp2006, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp2006
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    References listed on IDEAS

    as
    1. Alexandre Georgieff & Anthony Lepinteur, 2018. "Partial employment protection and perceived job security: evidence from France," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 846-867.
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    More about this item

    Keywords

    homeownership; job insecurity; employment protection; difference-in-differences;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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