Labour Supply Responses to Financial Wealth Shocks: Evidence from in Italy

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

No 2019:10, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: We look at how strongly shocks to wealth affect labour supply, using Italian data. We use asset price shocks to provide a measure of wealth changes that is exogenous to the household's saving and labour supply. Results point to significant effects of wealth on: hours of work; whether agents leave their jobs; and, labour earnings. The magnitude of these effects can be substantial, for example for individuals who suffered larger wealth losses during the financial crisis. Responses are similar for men and women on average, but older working age individuals have relatively strong responses that drive the population results. Short run effects are somewhat persistent

Keywords: Labour Supply; Financial wealth shocks; Wealth effects (search for similar items in EconPapers)
JEL-codes: D15 J22 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2019
New Economics Papers: this item is included in nep-age, nep-eur and nep-lma
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Citations: View citations in EconPapers (1)

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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 Italy (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2019:10

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