Work

House Prices, Wealth Effects and Labour Supply

Year: 2017

Type: article

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.

Source: Economica

DOI: 10.1111/ecca.12253

Authors: Richard Disney, John Gathergood

Institutions: Institute for Fiscal Studies, University College London, University of Nottingham

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: University of Essex, Royal Economic Society, Economic and Social Research Council