House prices and employment reallocation: international evidence

Olympia Bover () and Juan F Jimeno

No 705, Working Papers from Banco de España

Abstract: Over the last decade house prices increased remarkably in many countries. However, while in several countries there was an employment boom in the construction sector, in others the share of employment in this sector did not significantly change. In this paper we estimate a model of labor demand in the construction sector, featuring building constraints, which explains many of the international differences in the response of sectoral reallocation of employment to house prices. Countries with more building possibilities (Spain, Sweden and the US) have a high sectoral reallocation of employment, and display larger elasticities of labor demand in the construction sector with respect to house prices than countries that seem to have fewer building possibilities (Belgium, the Netherlands, and the UK). Nevertheless, our estimates imply that, for the whole economy, the elasticity of labor demand with respect to house prices is broadly similar across countries.

Keywords: house prices; labor demand; sectoral reallocation of labor (search for similar items in EconPapers)
JEL-codes: J23 R32 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2007-03
New Economics Papers: this item is included in nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/07/Fic/dt0705e.pdf First version, March 2007 (application/pdf)

Related works:
Working Paper: House Prices and Employment Reallocation: International Evidence (2007)
Working Paper: House Prices and Employment Reallocation: International Evidence (2007)
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:bde:wpaper:0705

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().