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House Prices, Wealth Effects and Labour Supply

House Prices, Wealth Effects and Labour Supply We examine the impact of house prices on labour supply decisions using UK microdata. We combine household survey data with local‐level house price measures and controls for local labour demand. Our microdata also allow us to control for individual level income expectations. We find significant house price effects on labour supply, consistent with leisure being a normal good. Labour supply responses to house prices are concentrated among young married female owners and older owners. This finding suggests that house prices affect the decisions of marginal workers in the economy. Our estimates imply that house prices are economically important in the participation decisions for these workers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economica Wiley

House Prices, Wealth Effects and Labour Supply

Economica , Volume 85 (339) – Jan 1, 2018

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References (46)

Publisher
Wiley
Copyright
Economica © 2018 The London School of Economics and Political Science
ISSN
0013-0427
eISSN
1468-0335
DOI
10.1111/ecca.12253
Publisher site
See Article on Publisher Site

Abstract

We examine the impact of house prices on labour supply decisions using UK microdata. We combine household survey data with local‐level house price measures and controls for local labour demand. Our microdata also allow us to control for individual level income expectations. We find significant house price effects on labour supply, consistent with leisure being a normal good. Labour supply responses to house prices are concentrated among young married female owners and older owners. This finding suggests that house prices affect the decisions of marginal workers in the economy. Our estimates imply that house prices are economically important in the participation decisions for these workers.

Journal

EconomicaWiley

Published: Jan 1, 2018

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