The impact of home ownership on the duration of unemployment

Ernest Goss, Joseph M. Phillips

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

Housing stock is one of the most important components of household wealth in the U.S. Public policy has vigorously promoted home ownership based on the belief that it strengthens the individual's commitment and contribution to the community. Yet it is possible that this social goal generates unanticipated consequences in the labor market This study examines potential labor market influences of home ownership, focusing on the length of unemployment. Using a sample of unemployed workers from the 1986 Panel Study of Income Dynamics, this study concludes that for some unemployed, home ownership significantly reduces unemployment duration. This appears to occur through two channels. First, the burden of monthly mortgage payments stimulates more vigorous job search, and second, home equity aids job search through a wealth effect.

Original languageEnglish
JournalReview of Regional Studies
Volume27
Issue number1
StatePublished - 1997

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duration of unemployment
job search
unemployment
ownership
labor market
second home
equity
public policy
housing
commitment
worker
income
community

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development

Cite this

The impact of home ownership on the duration of unemployment. / Goss, Ernest; Phillips, Joseph M.

In: Review of Regional Studies, Vol. 27, No. 1, 1997.

Research output: Contribution to journalArticle

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