A1 Journal article (refereed)
Home-ownership and unemployment : revisiting the Oswald hypothesis from a regional heterogeneity perspective (2023)

Tohmo, T., & Viinikainen, J. (2023). Home-ownership and unemployment : revisiting the Oswald hypothesis from a regional heterogeneity perspective. Economics and Business Letters, 12(4), 342-355. https://doi.org/10.17811/ebl.12.4.2023.342-355

JYU authors or editors

Publication details

All authors or editors: Tohmo, Timo; Viinikainen, Jutta

Journal or series: Economics and Business Letters

eISSN: 2254-4380

Publication year: 2023

Publication date: 15/12/2023

Volume: 12

Issue number: 4

Pages range: 342-355

Publisher: Universidad de Oviedo

Publication country: Spain

Publication language: English

DOI: https://doi.org/10.17811/ebl.12.4.2023.342-355

Publication open access: Openly available

Publication channel open access: Partially open access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/93019

Abstract

Home-ownership may create both positive and negative externalities. As an example of a negative externality, the so-called Oswald hypothesis suggests that a high home-ownership rate creates frictions in the economy and thus increases the unemployment rate. We approach this hypothesis from a novel perspective by taking into account regional differences in population density and dwelling composition. Using municipality-level panel data, we find that although the phenomenon identified by the Oswald hypothesis may not be omnipresent, it may manifest itself, particularly in semi-urban areas where the share of large ownership dwellings is high. We also find that in-migration to these areas is lower, which is consistent with the view that the home-ownership rate may affect migration flows and, thus, economic dynamics.

Keywords: unemployment; countryside; urban areas; housings; regional differences

Free keywords: home-ownership; unemployment; dwelling size; rural area; urban area

Contributing organizations

Ministry reporting: Yes

VIRTA submission year: 2023

JUFO rating: 1