causal relationship from homeownership to unemployment. The literature confirms a decreasing effect of homeownership on … geographical mobility of workers, but does not in general confirm that homeowners have longer unemployment spells or higher … unemployment rates. Even though this finding is related to heterogeneity in the labour force and associated selectivity effects …

local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be …