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Oswald’s thesis posits that homeowners should have longer unemployment spells than renters due to restricted mobility, but repeatedly the reverse is found. I contribute to solve this puzzle analyzing both job search intensity and unemployment duration. First, I show that homeowner’s mobility constraints have a negative impact on search. Theoretically, it is shown in a search model with moving costs. Using U.K. Labour Force Survey (LFS) data, it is confirmed when considering outright owners, while leveraged owners have the highest search. Second, I find evidence that homeowners select search methods associated with shorter unemployment spells, suggesting that they search more efficiently.
2016-04-15
WILEY-BLACKWELL
JRC96132
0022-4146,   
https://publications.jrc.ec.europa.eu/repository/handle/JRC96132,   
10.1111/jors.12240,   
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