Job Match and Housing Tenure

N. Edward Coulson*, Walter D’Lima, David Jinkins

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Homeownership, though it brings both private and social benefits, entails substantial fixed costs. Standard personal financial advice suggests that homeownership should only be undertaken when one's job situation is stable and job movement is not likely in the near future. Little research has asked whether this advice is followed. Our goal is to rectify that omission. To test this hypothesis, we employ detailed information on workers and housing decisions from Danish administrative data. We construct a measure of job mismatch and find evidence suggesting that homeowners are indeed better matched at their jobs than renters, and that an improved match leads renters to become homeowners. An examination of job durations suggests that homeownership is correlated with longer job duration both because of a direct causal effect and also due to an indirect effect through selection into homeownership.
Original languageEnglish
JournalReal Estate Economics
Number of pages32
ISSN1080-8620
DOIs
Publication statusPublished - 4 Jun 2022

Bibliographical note

Epub ahead of print. Published online: 04 June 2022.

Keywords

  • Housing tenure
  • Job match
  • Labor market
  • Search costs

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