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Housing wealth and labor supply: Evidence from a regression discontinuity design

Han Li, Jiangyi Li, Yi Lu () and Huihua Xie

Journal of Public Economics, 2020, vol. 183, issue C

Abstract: This paper uses the discontinuity in house size generated by Chinese housing policies to identify the effect of housing wealth on labor supply. The analysis finds a substantial deterrent effect of housing wealth on labor supply. Much of the housing wealth effect comes from the labor participation decision, with the effect on employed workers being ambiguous. Females, young generation and households with high repayment capacity are more responsive to gains in housing wealth.

Keywords: Housing wealth; Labor supply; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: J22 O18 R21 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.jpubeco.2020.104139

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