Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299966 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17038
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We here evaluate the link between job insecurity and one of the most-important decisions that individuals take: homeownership. The 1999 rise in the French Delalande tax on firms that laid off older workers produced an unexpected exogenous rise in job insecurity for younger workers. A difference-in-differences analysis of panel data from the European Community Household Panel shows that this greater job insecurity significantly reduced the probability of becoming a homeowner. This drop seems more attributable to individual preferences rather than greater capital constraints, consistent with individuals reducing their exposure to long-term financial commitments in more-uncertain environments.
Subjects: 
homeownership
job insecurity
employment protection
difference-in-differences
JEL: 
I38
J18
R21
Document Type: 
Working Paper

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