Advanced search
1 file | 955.49 KB Add to list

Does homeownership lead to longer unemployment spells? The role of mortgage payments

Stijn Baert (UGent) , Freddy Heylen (UGent) and Daan Isebaert (UGent)
Author
Organization
Abstract
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.
Keywords
duration analysis, housing tenure, unemployment

Downloads

  • Baert-Heylen-Isebaert - wp 13 858.pdf
    • full text
    • |
    • open access
    • |
    • PDF
    • |
    • 955.49 KB

Citation

Please use this url to cite or link to this publication:

MLA
Baert, Stijn, Freddy Heylen, and Daan Isebaert. “Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments.” Working Paper Series - Faculty of Economics and Business Administration, Ghent University 2013 : n. pag. Print.
APA
Baert, Stijn, Heylen, F., & Isebaert, D. (2013). Does homeownership lead to longer unemployment spells? The role of mortgage payments. Working Paper Series - Faculty of Economics and Business Administration, Ghent University.
Chicago author-date
Baert, Stijn, Freddy Heylen, and Daan Isebaert. 2013. “Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments.” Working Paper Series - Faculty of Economics and Business Administration, Ghent University.
Chicago author-date (all authors)
Baert, Stijn, Freddy Heylen, and Daan Isebaert. 2013. “Does Homeownership Lead to Longer Unemployment Spells? The Role of Mortgage Payments.” Working Paper Series - Faculty of Economics and Business Administration, Ghent University.
Vancouver
1.
Baert S, Heylen F, Isebaert D. Does homeownership lead to longer unemployment spells? The role of mortgage payments. Working Paper Series - Faculty of Economics and Business Administration, Ghent University. 2013.
IEEE
[1]
S. Baert, F. Heylen, and D. Isebaert, “Does homeownership lead to longer unemployment spells? The role of mortgage payments,” Working Paper Series - Faculty of Economics and Business Administration, Ghent University. 2013.
@misc{4368652,
  abstract     = {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.},
  author       = {Baert, Stijn and Heylen, Freddy and Isebaert, Daan},
  keywords     = {duration analysis,housing tenure,unemployment},
  language     = {eng},
  pages        = {26},
  series       = {Working Paper Series - Faculty of Economics and Business Administration, Ghent University},
  title        = {Does homeownership lead to longer unemployment spells? The role of mortgage payments},
  year         = {2013},
}