Compensation of regional unemployment in housing markets

W. Vermeulen, J.N. van Ommeren

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation through wages? Using Urban Audit data for 142 cities over 12 EU countries, as well as a Dutch household survey, we estimate relationships between local labour market indicators and the average house price level. The evidence suggests that workers are compensated in housing markets to a significant extent, so that regional differences in unemployment may reflect an equilibrium outcome. © 2009 The London School of Economics and Political Science.
Original languageEnglish
Pages (from-to)71-88
Number of pages17
JournalEconomica
Volume76
Issue number301
DOIs
Publication statusPublished - 2008

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