Is there a Link between Home Ownership and Unemployment Levels? Evidence from German Regional Data

Research Seminars

Using German regional data for 1998, 2002 and 2006, this study reexamines the Oswald hypothesis, the conjecture that high levels of home ownership are linked to inferior outcomes in regional labor markets. Applying a set of controls for regional unemployment rates, three different econometric models are specified and estimated: a cross-sectional model, a pooled data model, and a model taking into account unobserved time-invariant effects on regional unemployment rates. It is found that the link between home ownership and unemployment levels is inverse in cross-section but positive in panel estimations. The economic significance of the relationship is small in both cases, however. Factors like average labor productivity, participation, export orientation and human capital endowment seem to dominate the impact of home ownership on unemployment in German regions.


Oliver Lerbs

Research Associate, Oliver Lerbs // University of Applied Sciences for Public Administration and management of North Rhine-Westphalia

To the profile


Research Associate
Peter Westerheide
To the profile


Institute address


Click the button below to reload the content. (I agree to external content being displayed to me. Read more in our privacy policy).

  • Room Heinz König Hall