Did the post-1986 decline in the homeownership rate benefit the New Zealand labour market? A spatial-econometric exploration

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dc.contributor.authorCochrane, Williamen_NZ
dc.contributor.authorPoot, Jacquesen_NZ
dc.date.accessioned2022-09-15T21:06:52Z
dc.date.available2022-09-15T21:06:52Z
dc.date.issued2020en_NZ
dc.description.abstractThe proportion of New Zealand households living in owner-occupied dwellings has declined steadily since the early 1990s. The unemployment rate declined steadily as well, except for upward shifts due to the late 1990s Asian Financial Crisis and the Global Financial Crisis a decade later. Research initiated by Andrew Oswald in the 1990s posits that declining homeownership and declining unemployment are linked and that the causality runs from high homeownership leading to high unemployment. The international empirical evidence for this hypothesis is rather mixed. In this paper, we revisit the issue with New Zealand census data for commuting-defined labour market areas from 1986 until 2013. Allowing for spatial spillovers in our data, we apply a general nesting spatial-econometric model. We also consider the potentially different impacts of freehold and mortgaged homeownership. Generally, the evidence that a declining homeownership rate contributes to a lower unemployment rate is statistically fragile. When statistically significant, an increase of 1% in freehold ownership appears to increase a labour market area’s unemployment rate by between 0.07 and 0.2% points. The effect is relatively stronger in those labour market areas where freehold ownership is still relatively low.
dc.format.mimetypeapplication/pdf
dc.identifier.doi10.1007/s41685-020-00148-6en_NZ
dc.identifier.issn2509-7946en_NZ
dc.identifier.urihttps://hdl.handle.net/10289/15174
dc.language.isoen
dc.relation.isPartOfAsia Pacific Journal of Regional Scienceen_NZ
dc.titleDid the post-1986 decline in the homeownership rate benefit the New Zealand labour market? A spatial-econometric explorationen_NZ
dc.typeJournal Article
pubs.begin-page261
pubs.elements-id252796
pubs.end-page284
pubs.organisational-group/Waikato
pubs.organisational-group/Waikato/2026 PBRF
pubs.organisational-group/Waikato/DASL
pubs.organisational-group/Waikato/DASL/2026 PBRF - DASL
pubs.organisational-group/Waikato/DASL/DALPS Academics
pubs.organisational-group/Waikato/DASL/SSSI
pubs.organisational-group/Waikato/DASL/SSSI/2026 PBRF - SSSI
pubs.organisational-group/Waikato/DASL/SSSI/SCSP
pubs.organisational-group/Waikato/DASL/SSSI/SSSI Academics
pubs.organisational-group/Waikato/Emeritus Professors
pubs.owner.emailjacques.poot@waikato.ac.nz
pubs.owner.namePoot, Hendricus
pubs.publication-statusPublisheden_NZ
pubs.user.infoCochrane, William (bill.cochrane@waikato.ac.nz)
pubs.user.infoPoot, Hendricus (jacques.poot@waikato.ac.nz)
pubs.volume4en_NZ
uow.verification.statusverified
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