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Labor Demand Shocks and Housing Prices across the US: Does One Size Fit All?

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Listed:
  • Osei, Michael J.

    (Oklahoma State University)

  • Winters, John V.

    (Iowa State University)

Abstract

This paper examines whether effects of labor demand shocks on housing prices vary across time and space. Using data on 321 US metropolitan statistical areas, we estimate the medium- and long-run effects of increases in metropolitan statistical area-level employment and total labor income on housing prices. Instrumental variable estimates for different time periods, and also for coastal, non-coastal, large, and small metropolitan statistical areas are obtained using the shift-share instrument. Results suggest that labor demand shocks have positive effects on housing prices. However, these effects appear to vary across time periods and across different types of metropolitan statistical areas.

Suggested Citation

  • Osei, Michael J. & Winters, John V., 2018. "Labor Demand Shocks and Housing Prices across the US: Does One Size Fit All?," IZA Discussion Papers 11636, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11636
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    References listed on IDEAS

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    Cited by:

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    2. Ahoura Zandiatashbar & Carla Maria Kayanan, 2020. "Negative Consequences of Innovation-Igniting Urban Developments: Empirical Evidence from Three US Cities," Urban Planning, Cogitatio Press, vol. 5(3), pages 378-391.
    3. Uche Oluku & Shaoming Cheng, 2023. "A Mediation Analysis of the Relationship Between Land Use Regulation Stringency and Employment Dynamics," Papers 2305.02159, arXiv.org.
    4. Sofia Vale & Felipa de Mello-Sampayo, 2021. "Effect of Hierarchical Parish System on Portuguese Housing Rents," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    5. Ahoura Zandiatashbar & Carla Maria Kayanan, 2020. "Negative Consequences of Innovation-Igniting Urban Developments: Empirical Evidence from Three US Cities," Urban Planning, Cogitatio Press, vol. 5(3), pages 378-391.

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    More about this item

    Keywords

    housing prices; labor demand shocks; labor market; housing market;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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