Unsettled: job insecurity reduces home-ownership

Lepinteur, Anthony, Clark, Andrew E. and D'Ambrosio, Conchita (2024) Unsettled: job insecurity reduces home-ownership. CEP Discussion Papers (CEPDP2006). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2024 The Author(s)
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs J - Labor and Demographic Economics > J1 - Demographic Economics > J18 - Public Policy R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand
Date Deposited:	13 Feb 2025 15:57
Last Modified:	13 Feb 2025 15:57
URI:	http://eprints.lse.ac.uk/id/eprint/126786

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