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The aim of this paper is to study a possible connection between the   characteristics of the labour market, namely, employment protection and   flexibility, and the dynamics of the housing market. More specifically, this   contribution analyses whether the poor quality of employment in a given   economy could cause the collapse of the housing market and impairs its   recovery. In the second stage of our analysis, we provide estimates for Spain   over the period 1984-2014. In doing so, the autoregressive distributed lag   (ARDL) bounds test for cointegration is employed.

Is job insecurity a driver of the housing cycle? Some evidence in the Spanish case