Seminar: Effect of the status in the housing market on post-displacement labour market outcomes

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Jordy Meekes (UU)

Discussant: Mark Kattenberg (CPB)

Language: English

Registration:  Please register here

Abstract subject:
This paper examines to what extent the status in the housing market affects the labour market outcomes of displaced workers. Doing so, we integrate the research topics of unemployed job search, job displacement and housing. The main idea behind this paper is that the individual-specific status in the housing market affects the financial incentive structures of a displaced worker on job search. Information on housing tenure and household wealth are used to construct the individual-specific status in the housing market. Not only will we examine the effect of an individual’s status in the housing market on the job match outcome (i.e. employment), but also on the benefits (i.e., hourly wage) and costs (i.e., commuting distance and moving rate) of the job match. The research design used in this paper is driven by an exogenous shock, i.e. job displacement due to firm bankruptcy, to the labour market status of a worker. After exact matching on observable characteristics, we use a DiD fixed-effects estimator and find the striking result that job seekers who are in a relatively weak status in the housing market have a comparatively high exit rate out of unemployment and experience relatively low losses in hourly wage. Hence, we observe a clear incentive effect of the status in the housing market on post-displacement job match outcome and the losses in the post-displacement benefits of the job match. Importantly, the relatively low losses in the outcome and the benefits of the job match are not realized at the expense of relatively high losses in the costs of the job match.

Policy seminars
CPB organises policy seminars for policy makers, researchers and other stakeholders. These policy seminars focus on policy implications. Policy seminars are held on Thursday from 1.00 pm. to 2.00 pm.

Seminars
CPB also organises seminars for researchers. During these seminars, always held on Tuesday from 1.00 pm. to 2.00 pm., academic papers are presented and discussed.

Unsubscribe to the alert service
When you're registered for a seminar, you will be automatically invited for coming seminars. Here you can unsubscribe to this alert service (click button "verzenden"!).