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Regional housing wealth, relative housing wealth and labor market behavior

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  • Jiang, Xiandeng
  • Zhao, Ningru
  • Pan, Zheng

Abstract

This paper introduces a relative measure of housing wealth to explain the difference in effects between self-reported and regional housing wealth. Our theoretical model predicts a negative (positive) relationship between individual housing wealth (regional housing wealth) and labor supply. By using China’s housing market boom, we find that self-reported housing wealth significantly reduces homeowners’ working hours while regional housing wealth does not significantly affect their labor supply. Moreover, the results show that the negative effect of housing wealth on labor supply is mainly driven by the change of relative housing wealth. Further, several robustness checks are performed to corroborate the validity of our identification strategies and to test the sensitivity on the effect of relative housing wealth.

Suggested Citation

  • Jiang, Xiandeng & Zhao, Ningru & Pan, Zheng, 2022. "Regional housing wealth, relative housing wealth and labor market behavior," Journal of Housing Economics, Elsevier, vol. 55(C).
  • Handle: RePEc:eee:jhouse:v:55:y:2022:i:c:s1051137721000656
    DOI: 10.1016/j.jhe.2021.101811
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    Cited by:

    1. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.

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    More about this item

    Keywords

    Housing wealth; Relative measure; Labor supply;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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