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How house price appreciation affects homeowners' labour force participation : Evidence from urban China

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  • Jianmei Zhao
  • Lin Liu
  • Ruihan Liu

Abstract

This paper investigates the effects of house price appreciation on homeowners' labour force participation (LFP). Although economic theories predict that housing capital gains will reduce labour supply, empirical evidence from urban China revealed that house price appreciation significantly boosts homeowners' LFP. Heterogeneous analyses indicate that LFP behaviour is more likely to be affected by house price appreciation for female and younger homeowners. Furthermore, homeowners living in provinces with greater house price appreciation tend to be more active in job participation than those living in provinces with lower price appreciation.

Suggested Citation

  • Jianmei Zhao & Lin Liu & Ruihan Liu, 2018. "How house price appreciation affects homeowners' labour force participation : Evidence from urban China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(2), pages 233-252, April.
    • Handle: RePEc:bla:etrans:v:26:y:2018:i:2:p:233-252
    DOI: 10.1111/ecot.12138
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    References listed on IDEAS

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    Cited by:

    1. Huang, Naqun & Ning, Guangjie & Rong, Zhao, 2022. "Destination homeownership and labor force participation: Evidence from rural-to-urban migrants in China," Journal of Housing Economics, Elsevier, vol. 55(C).

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