IS THERE A RELATIONSHIP BETWEEN HOME OWNERSHIP AND UNEMPLOYMENT RATE IN ROMANIA?

Costin  CIORA

Authors

Costin CIORA Bucharest University of Economic Studies, Romania. Email: costin.ciora@cig.ase.ro. https://orcid.org/0000-0003-2850-8124

Keywords:

private home ownership, unemployment rate, behaviour of buyers, real estate market

Abstract

A country’s home ownership can indicate a high level of development. At the same time, social factors may contribute to low home ownership, triggering imbalances in the unemployment rate. The historical evolution of the home ownership in Romania was also analyzed. The aim of this article is to verify the hypothesis that there is a direct relationship between the increase in home ownership and the unemployment rate. More precisely, the analysis focuses on whether the growth of home ownership is or can represent the effect of the rise in the unemployment rate. Work hypotheses were analysed starting from the manner in which home ownership is classified by categories referring to the status in the labour market, as well as by property type. The results suggest no direct relation between the home ownership rate and unemployment rate in Romania, in contrast with recent specialized literature at the European level.

JEL Classification: R20, R21, R31

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