House prices, wealth effects and labour supply

Disney, Richard and Gathergood, John (2018) House prices, wealth effects and labour supply. Economica, 85 (339). pp. 449-478. ISSN 0013-0427

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Abstract

We examine the impact of house prices on labour supply decisions using UK microdata. We combine household survey data with local-level house price measures and controls for local labour demand. Our microdata also allow us to control for individual level income expectations. We find significant house price effects on labour supply, consistent with leisure being a normal good. Labour supply responses to house prices are concentrated among young married female owners and older owners. This finding suggests that house prices affect the decisions of marginal workers in the economy. Our estimates imply that house prices are economically important in the participation decisions for these workers.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Depositing User: Richard Disney
Date Deposited: 14 Nov 2017 09:22
Last Modified: 02 Jul 2018 14:20
URI: http://sro.sussex.ac.uk/id/eprint/71205
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