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 Francisco, 2007. "House Prices and Employment Reallocation: International Evidence," CEPR Discussion Papers 6543, C.E.P.R. Discussion Papers.
- Bover, Olympia & Jimeno, Juan F., 2007. "House Prices and Employment Reallocation: International Evidence," IZA Discussion Papers 3129, Institute for the Study of Labor (IZA).
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Other 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.:
- Olympia Bover, 2005. "Wealth effects on consumption: microeconometric estimates from the Spanish survey of household finances," Banco de Espaï¿½a Working Papers 0522, Banco de Espa�a.
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"Exports and Property Prices in France: Are they Connected?,"
CESifo Working Paper Series
3047, CESifo Group Munich.
- Balazs Egert & Rafal Kierzenkowski, 2010. "Exports And Property Prices In France: Are They Connected?," William Davidson Institute Working Papers Series wp985, William Davidson Institute at the University of Michigan.
- Balázs Égert & Rafal Kierzenkowski, 2010. "Exports and Property Prices in France: Are They Connected?," OECD Economics Department Working Papers 759, OECD Publishing.
- Rafal Kierzenkowski, 2009. "The Challenge of Restoring French Competitiveness," OECD Economics Department Working Papers 720, OECD Publishing.
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