Labour Supply and Home Ownership: the Impact of Borrowing Constraints on Female Activity in France
AbstractFrench housing policy has been seeking to promote home ownership. After a fairly robust rise until the early 1990s, first-time home-buying stalled for about ten years. Eighty-five percent of buyers take out loans, but households must meet two requirements in order to qualify: they need to provide a down payment and their loan cannot exceed 30% of income. By using infra-national fluctuations in real-estate prices and interest rates as sources of exogenous variation of debt, we can determine whether a household raises its labour supply when its income gearing nears the income ceiling. The data for a sample of couples in the 2004 Household Wealth Survey show that, up 25% of income, household income gearing does not influence female labour supply behaviour. When repayments cross that threshold, the female partner is 14% more likely to work. The combination of a weaker labour market and credit requirements can inhibit home ownership.
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Bibliographic InfoArticle provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.
Volume (Year): 417-418 (2009)
Issue (Month): (June)
Female Labour Supply; Home Ownership; Credit Constraints;
Find related papers by JEL classification:
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
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