Unsettled: job insecurity reduces homeownership
Andrew E. Clark, Conchita D'Ambrosio and Anthony Lepinteur
In this paper, we evaluate the link between job insecurity and one of the most important decisions that individuals take: homeownership. The 1999 rise in the French Delalande tax on firms that laid off older workers produced an unexpected exogenous rise in job insecurity for younger workers. A difference-in-differences analysis of panel data from the European Community Household Panel shows that this greater job insecurity significantly reduced the probability of becoming a homeowner. This drop seems more attributable to individual preferences rather than greater capital constraints, consistent with individuals reducing their exposure to long-term financial commitments in more uncertain environments.
16 April 2026
Scandinavian Journal of Economics 2026