How to Make the American Dream Possible Again: A Quantative Look at the Homeownership and Unemployment Rates in the United States from 2005-2009
Szubrowski, Jennifer Leigh
This study explores the relationship between homeownership rates and unemployment rates in the United States from 2005 to 2009 with populations of at least 60,000 through quantitative regression analysis. The study uses data from HUD's Extract of the American Community Survey (ACS) for the years 2005, 2006, 2007, 2008, and 2009. Similar to previous research completed by Professor Andrew Oswald on this subject, my study uses a linear regression equation, fixed effects, and control variables. In order to test this hypothesis, this paper investigates whether the unemployment rate in jurisdictions over 60,000 people in the United States has a statistically significant effect on the homeownership rate in the United States from 2005 to 2009. Through this research I investigate the existence of a negative correlation between unemployment rates and homeownership rates in the United States. However, unlike Professor Oswald, I do not insinuate that homeownership has a negative effect (higher unemployment) on employment.The results obtained when testing my hypothesis showed that the unemployment rate was statistically significant at the .10 level. I was able to reject my null in support of my alternative hypothesis. Therefore my assumption was correct - as the unemployment rate increases, the homeownership rate decreases in jurisdictions over 60,000. These results provide strong support for Obama Administration's job creation and foreclosure prevention programs. Understanding the relationship between unemployment and homeownership rates using recent U.S. jurisdictional data can contribute to the housing policy literature on the importance of job creation and the Administration's foreclosure prevention programs.The dataset also allows testing a second regression equation. This regression equation tests Andrew Oswald's hypothesis that as the homeownership rate increases, the unemployment rate also increases. However, my results, which are statistically significant at all levels, found a different relationship. My results found that as the homeowners. In conclusion my research contributes to the housing policy discussion by demonstrating that homeownership and employment are inextricably linked.
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