Housing market regulation and the social demand for job protection

• 成果类型: Article
• 署名作者: Decreuse, Bruno; van Ypersele, Tanguy
• 署名单位: Aix-Marseille Universite
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2011.06.001
• 发表日期: 2011
• 页码: 1397-1409
• 关键词: Foreclosure costs; Job protection; Fixed-term contracts; CPE

摘要

Controlling for country fixed effects, there is a positive and statistically significant relationship between the degree of housing market regulation (HMR) and the strictness of employment protection legislation (EPL) in OECD countries. We provide a model in which HMR increases foreclosure costs in case of mortgage default, while EPL raises the administrative cost of dismissal. Owing to banks' lending behavior, individuals' demand for job protection increases with the cost of foreclosure. We use the model to discuss social housing and family insurance, the case for mortgage unemployment insurance, the impact of min down-payment policies, regulations on the use of fixed-term contracts, the failure of a 2006 French reform of labor contracts, and feedback effects from HMR to EPL. (C) 2011 Elsevier B.V. All rights reserved.