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Journal Article

Home ownership and job satisfaction

Authors

Publication date

May 2014

Summary

This paper investigates the link between job satisfaction and home ownership. We explicitly focus on the effect of a transition from non-ownership to ownership on the self-reported job satisfaction scores. In other words, we concentrate on the change in job satisfaction response for individuals observed right before and after the transition. Utilizing the panel feature of the British Household Panel Survey, we find that transition to ownership reduces job satisfaction within a year following the purchase—controlling for observed variation and unobserved heterogeneity. The reduction in job satisfaction is sharper when the purchase is financed through a mortgage. We also test if this pattern persists over years. We show that the initial reduction in job satisfaction is more than doubled within 3 years after the transition for both categories of ownership. We conclude that home ownership may be a constraint for the career prospects of the employed workers, since it reduces mobility and forces them to become more dependent on the local labor market conditions. These concerns are deeper in case of a debt-financed ownership.

Published in

Social Indicators Research

Volume and page numbers

117 , 165 -177

DOI

http://dx.doi.org/10.1007/s11205-013-0338-3

ISSN

16

Subjects

Labour Market, Well Being, and Housing Market

Notes

Not held in Research Library - bibliographic reference only

#522838


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