A European Cross-Country Comparison of the Impact of Homeownership and Transaction Costs on Job Tenure

• Published in: Regional studies 2013-10, Vol.47 (9), p.1443-1461
• Main Authors: De Graaff, Thomas, Van Leuvensteijn, Michiel
• Format: Article
• Language: English
• Subjects: Actividad laboral; Ancienneté professionnelle; Beschäftigungsverhältnis; Bgi / Prodig; Competing risk; Costes de transacción; Coûts des transactions; Cross-national analysis; Employment. Labour; Hausbesitz; Home ownership; Housing; Housing market; Housing tenure; Human geography; International comparisons; Job tenure; Konkurrierendes Risiko; Logement; Microeconomics; Occupational mobility; Political and economic geography; Riesgo competitivo; Risques; Studies; Tenencia de viviendas; Tenure; Transaction costs; Transaktionskosten; Unemployment; 交易成本; 住房使用权; 工作任期; 竞争风险
• ISSN: 0034-3404; 1360-0591
• DOI: 10.1080/00343404.2011.626761

De Graaff T. and van Leuvensteijn M. A European cross-country comparison of the impact of homeownership and transaction costs on job tenure, Regional Studies. This paper looks at the impacts across European countries of homeownership and transaction costs on job tenure. The analysis is based on a representative household sample of fourteen European countries covering the period 1994-2001. These data are merged with country-specific transaction tax data and aggregate homeownership rates. Similar to previous microeconomic studies, the results indicate that homeownership reduces job mobility as well as the probability of becoming unemployed or economically inactive. It is found, however, that this effect is severely mitigated by two factors. First, it decreases when aggregate homeownership rates are higher. Thus, homeowners have larger job tenures, but more so in countries with low homeownership rates. Second, transaction costs on the housing market are positively associated with the probability of becoming unemployed.