House prices and employment reallocation: international evidence
AbstractOver 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.
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Bibliographic InfoPaper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0705.
Length: 42 pages
Date of creation: Mar 2007
Date of revision:
house prices; labor demand; sectoral reallocation of labor;
Other versions of this item:
- Bover, Olympia & Jimeno, Juan F., 2007. "House Prices and Employment Reallocation: International Evidence," IZA Discussion Papers 3129, Institute for the Study of Labor (IZA).
- Bover, Olympia & Jimeno, Juan Francisco, 2007. "House Prices and Employment Reallocation: International Evidence," CEPR Discussion Papers 6543, C.E.P.R. Discussion Papers.
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-10 (All new papers)
- NEP-LTV-2007-03-10 (Unemployment, Inequality & Poverty)
- NEP-URE-2007-03-10 (Urban & Real Estate Economics)
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.:
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