1 Afdeling for Nationaløkonomi, Faculty of Social Sciences, Aarhus University, Aarhus University2 Department of Economics and Business Economics, Aarhus BSS, Aarhus University3 Københavns Universitet4 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
This paper investigates the effects of homeownership on labour mobility and unemployment duration. We distinguish between finding employment locally or being geographically mobile. We find that homeownership hampers the propensity to move for job reasons, but improves the chances of finding local jobs, which is in accordance with the predictions from our theoretical model. The overall hazard rate into employment is higher for homeowners, such that there is a negative correlation between homeownership and unemployment duration. Our empirical findings thus contradict the so-called Oswald hypothesis, even if support is found for the main mechanism behind the hypothesis, namely that home ownership hampers mobility.