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Wealth, labor supply and life satisfaction: The case of urban housing demolition in China

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  • Li, Feng
  • Xiao, Jing Jian
  • Cai, Feiying

Abstract

This paper provides new evidence from China for the causal relationship between wealth and labor supply, using the case of the large-scale urban housing demolition (UHD) in China resulting from extensive urban renewal and real estate development. Employing the difference-in-differences approach and a nationally representative sample, we find that UHD produces substantial wealth growth for affected households and, consequently reduces individual labor supply in the extensive margin and improves individual life satisfaction, especially for women. Our results may offer insights into the emerging labor shortage in China.

Suggested Citation

  • Li, Feng & Xiao, Jing Jian & Cai, Feiying, 2019. "Wealth, labor supply and life satisfaction: The case of urban housing demolition in China," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    • Handle: RePEc:eee:ecolet:v:183:y:2019:i:c:1
    DOI: 10.1016/j.econlet.2019.108597
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    References listed on IDEAS

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    4. David Cesarini & Erik Lindqvist & Matthew J. Notowidigdo & Robert Östling, 2017. "The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries," American Economic Review, American Economic Association, vol. 107(12), pages 3917-3946, December.
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    Cited by:

    1. Li, Feng & Xiao, Jing Jian, 2020. "Losing the future: Household wealth from urban housing demolition and children's human capital in China," China Economic Review, Elsevier, vol. 63(C).
    2. Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
    3. Xuecun Zhao & Yanrong Liu, 2022. "Effects of housing demolition on labor supply: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1663-1692, August.
    4. Feng, Shuaizhang & Lu, Jingliang & Shen, Leilei, 2024. "Hukou Matters: The heterogeneous local labor market effects of export expansions in China," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 321-340.
    5. Chuhong Wang & Yonghua Wang & Xingfei Liu & Jiatong Zhong, 2023. "Housing Demolition and Occupational Mobility: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(1), pages 191-221, November.
    6. Mingzhi Hu & Yating Zhang, 2024. "Housing demolition and labour force participation: A gender difference perspective," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(1), January.

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    More about this item

    Keywords

    Urban housing demolition; Wealth; Labor supply; Life satisfaction;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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