Labour supply responses to financial wealth shocks: evidence from Italy

Renata Bottazzi, Serena Trucchi and Matthew Wakefield ()
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Matthew Wakefield: Institute for Fiscal Studies and University of Bologna

No W17/29, IFS Working Papers from Institute for Fiscal Studies

Abstract: We look at how strongly shocks to asset values affect labour supply, using Italian data. We use asset price shocks to provide a measure of wealth changes that is exogenous to households’ saving and labour supply. Our results point to significant effects of wealth on hours of work and on whether or not agents leave their jobs. The magnitude of these effects can be substantial, for example for those individuals who suffered larger wealth losses during the financial crisis. Family effects reflect similar responses from men and women on average. Older working-age individuals drive the population results.

Keywords: Labour Supply; Financial wealth shocks; Wealth effects (search for similar items in EconPapers)
Date: 2017-12-22
New Economics Papers: this item is included in nep-age and nep-eur
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Labour supply responses to financial wealth shocks: evidence from Italy (2021)
Working Paper: Labour Supply Responses to Financial Wealth Shocks: Evidence from in Italy (2019)
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