Does Homeownership Hinder Labor Market Activity? Evidence From Housing Privatization and Restitution in Brno.

Mikula, M., Montag, J. 2019. Does homeownership hinder labor market activity? Evidence from housing privatization and restitution in Brno. MUNI ECON Working Paper n. 2019-06. Brno: Masaryk University.

40 Pages Posted: 7 Jun 2019 Last revised: 8 Jan 2022

Date Written: May 14, 2019

Abstract

We study the effects of homeownership on labor force participation and unemployment. We exploit housing privatization and restitution after the fall of communism as a source exogenous assignment of homeowner/renter status, using a unique dataset from the city of Brno, Czech Republic. We do not find any evidence of homeownership hindering labor force participation. In fact, our estimates suggest that homeownership reduces unemployment by four to six percentage points. Homeownership appears to decrease the risk of unemployment by about one third to one half, relative to renters. The estimated effects on labor force participation are systematically around zero.

Keywords: Homeownership, labor force participation, unemployment, housing privatization and restitution

JEL Classification: J21, J64, P14, P25, P26, R31

Suggested Citation

Mikula, Štepán and Montag, Josef, Does Homeownership Hinder Labor Market Activity? Evidence From Housing Privatization and Restitution in Brno. (May 14, 2019). Mikula, M., Montag, J. 2019. Does homeownership hinder labor market activity? Evidence from housing privatization and restitution in Brno. MUNI ECON Working Paper n. 2019-06. Brno: Masaryk University., Available at SSRN: https://ssrn.com/abstract=3392341 or http://dx.doi.org/10.2139/ssrn.3392341

Štepán Mikula

Masaryk University

Lipová 41a
Brno, 602 00
Czech Republic

Josef Montag (Contact Author)

Charles University ( email )

nam. Curieovych 7
Prague 1, 11640
Czech Republic

HOME PAGE: http://josefmontag.github.io

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