Does Homeownership Cause Unemployment?

<p>New research highlights the connection between locations with high levels of homeownership and above average unemployment.</p>
March 29, 2007, 8am PDT | Christian Madera | @cpmadera
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"English economist Andrew Oswald has shown that across European countries, and across U.S. states, high levels of home ownership are correlated with high levels of unemployment. More conventional factors such as generous welfare benefits or high levels of unionization don't explain unemployment nearly as well as the tendency to own houses. Renting your home and staying flexible do wonders for your chances of always finding an interesting job to do."

"Recent research in the Economic Journal suggests that people who own their own homes form denser local networks, which help unearth local jobs. Still, the jobs tend to be less well-matched and commuting distances are longer. So, professor Oswald is right to argue that we should do everything possible to free up impediments to renting or to selling a house and buying a new one. It would be handy if we were allowed to build houses near Manhattan, too."

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Published on Wednesday, March 28, 2007 in Slate Magazine
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