House Prices, Wealth Effects and Labour Supply

Richard Disney and John Gathergood

Discussion Papers from University of Nottingham, School of Economics

Abstract: We examine the impact of housing wealth on labour supply using exogenous local variations in house prices and household panel data for Britain. Our analysis controls for variations in local labour demand and income expectations which might co-determine house prices and labour supply. We find significant effects of house price variations on labour supply, consistent with leisure being a normal good. Labour supply is particularly sensitive to house prices among the young and older men. Our findings imply that housing wealth losses may have contributed to the unexpectedly high rates of labour market activity in Britain during the Great Recession.

Keywords: Labour supply; Wealth effects; House prices JEL codes: E51, E52, F31, F33 (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-eur, nep-lma, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www.nottingham.ac.uk/economics/documents/discussion-papers/13-02.pdf (application/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 labor supply (2014)
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:not:notecp:13/02

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, School of Economics School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by ().