Bracke, Philippe, Hilber, Christian A. L. 
ORCID: 0000-0002-1352-495X and Silva, Olmo
(2012)
Homeownerhip and entrepreneurship.
SERC Discussion Papers (SERCDP0103).
Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.
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Abstract
We study the link between homeownership and entrepreneurship by exploiting the longitudinal dimension of the British Household Panel Survey (BHPS) and constructing a detailed monthly-spell dataset that tracks individuals‟ job history and tenure choice, coupled with other time-varying characteristics. Our fixed-effects estimates show that purchasing a house reduces the likelihood of starting a business by 20-25%. This result is driven by homeowners with mortgages and persists for several years after entering homeownership. The negative link can be rationalized by portfolio considerations: leveraged housing investments crowd out entrepreneurial investments. Alternative explanations based on credit constraints find little support in our data.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.spatialeconomics.ac.uk/SERC/publication... |
| Additional Information: | © 2012 The Authors |
| Divisions: | Methodology Spatial Economics Research Centre Centre for Economic Performance Geography & Environment |
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| JEL classification: | D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Personal Finance G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand |
| Date Deposited: | 29 Jul 2014 13:43 |
| Last Modified: | 16 May 2024 11:58 |
| Funders: | Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government |
| URI: | http://eprints.lse.ac.uk/id/eprint/58436 |
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