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Wealth, labor supply and life satisfaction: The case of urban housing demolition in China

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  • Li, Feng
  • Xiao, Jing Jian
  • Cai, Feiying

Abstract

This paper provides new evidence from China for the causal relationship between wealth and labor supply, using the case of the large-scale urban housing demolition (UHD) in China resulting from extensive urban renewal and real estate development. Employing the difference-in-differences approach and a nationally representative sample, we find that UHD produces substantial wealth growth for affected households and, consequently reduces individual labor supply in the extensive margin and improves individual life satisfaction, especially for women. Our results may offer insights into the emerging labor shortage in China.

Suggested Citation

  • Li, Feng & Xiao, Jing Jian & Cai, Feiying, 2019. "Wealth, labor supply and life satisfaction: The case of urban housing demolition in China," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    • Handle: RePEc:eee:ecolet:v:183:y:2019:i:c:1
    DOI: 10.1016/j.econlet.2019.108597
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
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    3. Wang, Chuhong & Wang, Yonghua & Liu, Xingfei & Zhong, Jiatong, 2022. "Housing Demolition and Occupational Mobility: Evidence from China," IZA Discussion Papers 15750, Institute of Labor Economics (IZA).
    4. Li, Feng & Xiao, Jing Jian, 2020. "Losing the future: Household wealth from urban housing demolition and children's human capital in China," China Economic Review, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Urban housing demolition; Wealth; Labor supply; Life satisfaction;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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