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Effects of housing demolition on labor supply: Evidence from China

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  • Xuecun Zhao
  • Yanrong Liu

Abstract

This paper investigates how housing demolition affects labor supply using the China Family Panel Studies, a nationally representative household survey from China. We argue that housing demolition is likely to be random across households within the same community. We find that housing demolition reduces overall labor force participation by ~3.3 percentage points and farm work participation by ~4.4 percentage points. We also find that the negative impact on labor force participation is mainly driven by older people, women, less‐educated people, and people living in rural regions. The negative impact of housing demolition on labor force participation persists over time.

Suggested Citation

  • Xuecun Zhao & Yanrong Liu, 2022. "Effects of housing demolition on labor supply: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1663-1692, August.
    • Handle: RePEc:bla:rdevec:v:26:y:2022:i:3:p:1663-1692
    DOI: 10.1111/rode.12861
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