Rent Control and Unemployment Duration

descriptionPublicationkeyboard_double_arrow_right Article , Research , Preprint 01 Jan 2003 Denmark Publisher:Elsevier BVJournal:Journal of Public Economics, volume 89, pages 2,165-2,181 (issn: 0047-2727,

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Authors: Svarer, Michael; Rosholm, Michael; Munch, Jakob Roland;

doi: 10.2139/ssrn.429965 , 10.1016/j.jpubeco.2004.11.003

handle: 10419/20085

Rent Control and Unemployment Duration

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Abstract

In this paper we investigate whether rent control affects the functioning of the labour market.Particularly, we focus on the effect of rent control on the length of individual unemploymentduration. Theoretically, the effect is ambiguous. Rent control reduces housing mobility andcould very well spill-over to mobility in the labour market. On the other hand to maintain theirrent control benefits unemployed individuals are presumably less demanding when acceptinga job in the local labour market. Based on a rich Danish data set we investigate the empiricalcontents of the issue, and find results that are in clear accordance with the theoreticalpredictions.

Country

Denmark

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Keywords

rent control; unemployment duration; search model, Arbeitsuche, Arbeitslosigkeit, unemployment duration, L51, Rent control; Unemployment duration; Search model, ddc:330, Dauer, Dänemark, rent control, search model, Arbeitsmobilität, C41, J61, D45, J64, Mietpreisbindung, Schätzung, jel: jel:C41, jel: jel:J61, jel: jel:D45, jel: jel:L51

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