The Effect of Housing Wealth on Labor Force Participation: Evidence from China

Shihe Fu (), Yu Liao () and Junfu Zhang
Additional contact information
Yu Liao: Clark University

No 9745, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses the 2011 China Household Finance Survey data to estimate the effect of change in housing value on homeowners' labor force participation. Using the average housing capital gains of other homes in the same community as an instrument for the housing capital gains of a given household, we find that a 100 thousand yuan increase in housing value leads to a 1.37 percentage point decrease in female homeowners' probability of participating in the labor force and a 1.49 percentage point increase in their probability of becoming housewives. We find little effect on men's labor force participation.

Keywords: labor supply; housing price; housing wealth effect; labor force participation (search for similar items in EconPapers)
JEL-codes: J21 J22 R20 R30 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2016-02
New Economics Papers: this item is included in nep-cna, nep-dem, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Forthcoming - published in: Journal of Housing Economics, 2016, 33, 59-69

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https://docs.iza.org/dp9745.pdf (application/pdf)

Related works:
Journal Article: The effect of housing wealth on labor force participation: Evidence from China (2016)
Working Paper: The effect of housing wealth on labor force participation: evidence from China (2016)
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