Year Published
2015
Abstract
In this article, we test whether tenure choice influences employment. This influence
might arise through a number of channels, including transaction costs, lock-in effects, wealth
effects, externalities and commuting times. These factors could collectively have either a positive
or negative effect on employment outcomes. Using Current Population Survey panel data from
1988 to 2013, we conclude that tenure rates do not statistically influence employment growth
rates. Using Panel Study of Income Dynamics data from 1994 to 2011 and Survey of Income and
Program Participation data from 1995 to 2013, we conclude that home-owning does not increase
peoples’ unemployment probabilities or significantly increase people’s unemployment spells or
decrease people’s wages. But home-owning does affect employment by lengthening employment
durations and increasing the likelihood of interstate moves. By investigating some features of
home-owing- presence of mortgages, negative equity, wealth accumulation and attachment to
communities-we conclude that having mortgages, negative equity and wealth accumulation
might affect job outcomes, largely in a positive direction.
might arise through a number of channels, including transaction costs, lock-in effects, wealth
effects, externalities and commuting times. These factors could collectively have either a positive
or negative effect on employment outcomes. Using Current Population Survey panel data from
1988 to 2013, we conclude that tenure rates do not statistically influence employment growth
rates. Using Panel Study of Income Dynamics data from 1994 to 2011 and Survey of Income and
Program Participation data from 1995 to 2013, we conclude that home-owning does not increase
peoples’ unemployment probabilities or significantly increase people’s unemployment spells or
decrease people’s wages. But home-owning does affect employment by lengthening employment
durations and increasing the likelihood of interstate moves. By investigating some features of
home-owing- presence of mortgages, negative equity, wealth accumulation and attachment to
communities-we conclude that having mortgages, negative equity and wealth accumulation
might affect job outcomes, largely in a positive direction.
Research Category