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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter M. Zorn, 1989. "Mobility-Tenure Decisions and Financial Credit: Do Mortgage Qualification Requirements Constrain Homeownership?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 1-16.
- Janice Shack-Marquez & William L. Wascher, 1986.
"Some direct evidence on the importance of borrowing constraints to the labor force participation of married women,"
Working Paper Series / Economic Activity Section
63, Board of Governors of the Federal Reserve System (U.S.).
- Janice Shack-Marquez & William L. Wascher, 1987. "Some Direct Evidence on the Importance of Borrowing Constraints to the Labor Force Participation of Married Women," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 593-602.
- Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
- Douglas Staiger & James H. Stock, 1994.
"Instrumental Variables Regression with Weak Instruments,"
NBER Technical Working Papers
0151, National Bureau of Economic Research, Inc.
- Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D3E).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.