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.

Speaker

Oliver Lerbs

University of Applied Sciences for Public Administration and management of North Rhine-Westphalia and ZEW

Date

07.04.2011 | 16 - 17:30 Uhr

Event Location

ZEW, L 7,1 D-68161 Mannheim

Room

Heinz König Hall

Contact

Research Associate