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Publisher: University of Warwick, Department of Economics
Languages: English
Types: Book
Subjects: HD
The paper conjectures that the high unemployment of the Western economies has been produced by the decline of the private house-rental market and the rise of home-ownership. Evidence is provided for the developed nations, the states of the USA, and the regions of the UK, Italy, France and Sweden. Although its calculations should be viewed as tentative, the paper's results imply that a 10 percentage point rise in the owner-occupation rate is associated with an increase of approximately 2 percentage points in the unemployment rate. This would be sufficient to explain a significant part of the rise in joblessness in the industrialized countries.
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    • 40 Freeman, R.B (1988). "Labour Market Institutions and Economic Performance", Economic Policy, 6, 64-78.
    • Grossman, S.J. and Hart, O.D. (1981). "Implicit Contracts, Moral Hazard and Unemployment", American Economic Review, P&P, 71, 301-307.
    • OECD (1994). Jobs Study, Paris.
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