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The effect of family property income on labor supply: Evidence from China

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  • Wang, Yong
  • Ge, Yanxia

Abstract

This paper discusses the impact of family property income on labor supply. We use a Heckman two-stage model to solve the selection problem and CFPS data to conduct an empirical test. Depending on the estimation results of the Heckman two-stage model, family property income reduces the probability of employment and lowers the labor supply. Additionally, the negative effect on younger workers is greater than that of elder workers. As family property income is growing rapidly in China, how to inspiring young workers to join in the labor force will become a problem that society must face.

Suggested Citation

  • Wang, Yong & Ge, Yanxia, 2018. "The effect of family property income on labor supply: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 57(C), pages 114-121.
    • Handle: RePEc:eee:reveco:v:57:y:2018:i:c:p:114-121
    DOI: 10.1016/j.iref.2018.02.016
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    References listed on IDEAS

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    5. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
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    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    8. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
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    Cited by:

    1. 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.
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    3. Sumiko Asai, 2019. "Changes in revenue structure of a leading open access journal publisher: the case of BMC," Scientometrics, Springer;Akadémiai Kiadó, vol. 121(1), pages 53-63, October.

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    More about this item

    Keywords

    Family property income; Labor supply; Income effect; Sample selection bias; Heckman two-stage model;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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