House prices, wealth effects and labor supply

Richard Disney () and John Gathergood
Additional contact information
Richard Disney: Institute for Fiscal Studies and University of Sussex

No W14/25, IFS Working Papers from Institute for Fiscal Studies

Abstract: We examine the impact of housing wealth on labor supply decisions using data on exogenous local variation in house prices merged into household panel data for Britain. Our estimates are conditioned on variations in local labor demand and income expectations as these may co-determine housing wealth and labor supply. We use renters as a control group and test for the potential endogeneity of tenure and location. We find significant housing wealth effects on labor supply among young married / co-habiting female owners and older male owners, consistent with leisure being a normal good. The size of these effects is economically important. Our estimates imply housing wealth effects have stronger effects then local labor market conditions upon participation decisions for these workers.

Date: 2014-10-07
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ifs.org.uk/uploads/publications/wps/WP201425.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://www.ifs.org.uk/uploads/publications/wps/WP201425.pdf [302 Found]--> https://ifs.org.uk/uploads/publications/wps/WP201425.pdf)

Related works:
Journal Article: House Prices, Wealth Effects and Labour Supply (2018)
Working Paper: House prices wealth effect and labor supply (2015)
Working Paper: House Prices, Wealth Effects and Labour Supply (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ifs:ifsewp:14/25

Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this paper

More papers in IFS Working Papers from Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().