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Credit Market Constraints and Labor Market Decisions

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  • Del Boca, Daniela

    ()
    (University of Turin)

  • Lusardi, Annamaria

    ()
    (Dartmouth College)

Abstract

In this paper, we examine whether imperfections in credit markets spill over to other markets, particularly the labor market. We take the case of Italy, a country that experienced changes in the mortgage market brought about by the 1992 European unification and other institutional shifts. These events make Italy a good laboratory to study the effects of financial markets on the labor market. Using a simultaneous equation framework and household data from the Bank of Italy between 1989 and 1993, we estimate the relationship between female participation and mortgage use. We find a significant impact of mortgages on women’s participation in the labor market.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 598.

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Length: 44 pages
Date of creation: Oct 2002
Date of revision:
Publication status: published in: Labour Economics, 2003, 10 (5), 681-703
Handle: RePEc:iza:izadps:dp598

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Keywords: female labor market participation; mortgage market;

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References

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Citations

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Cited by:
  1. Nuno Martins & Ernesto Villanueva, 2006. "Does limited access to mortgage debt explain why young adults live with their parents?," Banco de Espa�a Working Papers 0628, Banco de Espa�a.
  2. Jeffrey R. Campbell & Zvi Hercowitz, 2004. "The role of households' collateralized debts in macroeconomic stabilization," Working Paper Series, Federal Reserve Bank of Chicago WP-04-24, Federal Reserve Bank of Chicago.
  3. Cigno, Alessandro, 2006. "Is There a Social Security Tax Wedge?," IZA Discussion Papers 1967, Institute for the Study of Labor (IZA).
  4. Blundell, Richard & Pistaferri, Luigi & Saporta-Eksten, Itay, 2014. "Consumption inequality and family labor supply," Working Paper Series, European Central Bank 1656, European Central Bank.
  5. Renata Bottazzi & Hamish Low & Matthew Wakefield, 2007. "Why do home owners work longer hours?," IFS Working Papers, Institute for Fiscal Studies W07/10, Institute for Fiscal Studies.
  6. Raj Chetty & Adam Szeidl, 2006. "Consumption Commitments and Risk Preferences," NBER Working Papers 12467, National Bureau of Economic Research, Inc.
  7. Jeffrey R. Campbell & Zvi Hercowitz, 2005. "The Role of Collateralized Household Debt in Macroeconomic Stabilization," NBER Working Papers 11330, National Bureau of Economic Research, Inc.
  8. Abe, Yukiko, 2011. "Family labor supply, commuting time, and residential decisions: The case of the Tokyo Metropolitan Area," Journal of Housing Economics, Elsevier, Elsevier, vol. 20(1), pages 49-63, March.
  9. Serena Trucchi, 2011. "How credit markets affect homeownership: an explanation based on differences between Italian regions," CeRP Working Papers 122, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  10. Jeffrey R. Campbell & Zvi Hercowitz, 2011. "The financial labor supply accelerator," Working Paper Series, Federal Reserve Bank of Chicago WP-2011-05, Federal Reserve Bank of Chicago.
  11. Jeffrey R. Campbell & Zvi Hercowitz, 2004. "The dynamics of work and debt," Working Paper Series, Federal Reserve Bank of Chicago WP-04-05, Federal Reserve Bank of Chicago.

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