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Housing wealth and labor supply: Evidence from a regression discontinuity design

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  • Li, Han
  • Li, Jiangyi
  • Lu, Yi
  • Xie, Huihua

Abstract

This paper uses the discontinuity in house size generated by Chinese housing policies to identify the effect of housing wealth on labor supply. The analysis finds a substantial deterrent effect of housing wealth on labor supply. Much of the housing wealth effect comes from the labor participation decision, with the effect on employed workers being ambiguous. Females, young generation and households with high repayment capacity are more responsive to gains in housing wealth.

Suggested Citation

  • Li, Han & Li, Jiangyi & Lu, Yi & Xie, Huihua, 2020. "Housing wealth and labor supply: Evidence from a regression discontinuity design," Journal of Public Economics, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:pubeco:v:183:y:2020:i:c:s0047272720300037
    DOI: 10.1016/j.jpubeco.2020.104139
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    More about this item

    Keywords

    Housing wealth; Labor supply; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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