House prices, wealth effects and labour supply

Disney, Richard; Gathergood, John

Abstract

We examine the impact of house prices on labour supply decisions using UK micro data. We combine household survey data with local level house price measures and controls for local labour demand. Our micro data also allows us to control for individual level income expectations. We find significant house price effects on labour supply, consistent with leisure being a normal good. Labour supply responses to house prices are concentrated among young married female owners and older owners. This finding suggests house prices affect the decisions of marginal workers in the economy. Our estimates imply house prices are economically important for the participation decisions for these workers.

Citation

Disney, R., & Gathergood, J. (2018). House prices, wealth effects and labour supply. Economica, 85(339), 449-478. https://doi.org/10.1111/ecca.12253

• Journal Article Type: Article
• Acceptance Date: Jun 22, 2017
• Online Publication Date: Nov 1, 2017
• Publication Date: Jun 7, 2018
• Deposit Date: Jul 3, 2017
• Publicly Available Date: Nov 2, 2019
• Journal: Economica
• Print ISSN: 0013-0427
• Electronic ISSN: 1468-0335
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 85
• Issue: 339
• Pages: 449-478
• DOI: https://doi.org/10.1111/ecca.12253
• Keywords: Labour supply; Wealth effects; House prices
• Public URL: https://nottingham-repository.worktribe.com/output/936610
• Publisher URL: http://onlinelibrary.wiley.com/doi/10.1111/ecca.12253/abstract
• Additional Information: This is the peer reviewed version of the following article: Disney, R. and Gathergood, J. (2017), House Prices, Wealth Effects and Labour Supply. Economica. doi:10.1111/ecca.12253, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/ecca.12253/abstract. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving."