Labor Market Institutions and Homeownership

54 Pages Posted: 21 May 2020

Date Written: May 20, 2020

Abstract

To what extent labor market institutions can explain homeownership rate differences over time and across countries? Using data from 19 countries over fifty years, I find a positive correlation between employment rigidities and homeownership, and a negative correlation with wage. I rationalize these findings through a DSGE model where heterogeneous households face a housing tenure decision in the presence of labor frictions. Labor rigidities affect housing tenure choice through their impact on employment and wage volatility. Labor institutions explain a relevant share of homeownership heterogeneity between countries and over time and labor reforms can interfere with policies targeted to increase homeownership.

Keywords: Housing markets; Labor market institutions; DSGE; Labor reforms

JEL Classification: J08; J30; J50; R20; R21

Suggested Citation

Camilli, Andrea, Labor Market Institutions and Homeownership (May 20, 2020). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 440, Available at SSRN: https://ssrn.com/abstract=3606667

Andrea Camilli (Contact Author)

University of Milano-Bicocca ( email )

PIAZZA ATENEO NUOVO 1
EDIFICIO U6
MILANO, 20126
Italy

HOME PAGE: http://https://sites.google.com/site/andreacamillieconomics/

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