How house price appreciation affects homeowners' labour force participation: Evidence from urban China. Issue 2 (20th October 2017)

• Record Type: Journal Article
• Authors: Zhao, Jianmei; Liu, Lin; Liu, Ruihan
• Is Part Of: Economics of transition. Volume 26:Issue 2(2018:Apr.)
• Page Start: 233
• Page End: 252
• Publication Date: 2017-10-20
• Subjects: housing -- price appreciation -- labour supply -- China; Europe, Eastern -- Economic policy -- Periodicals; Europe, Central -- Economic policy -- Periodicals; Capitalism -- Europe, Eastern -- Periodicals; Capitalism -- Europe, Central -- Periodicals; 338.9405
• DOI: 10.1111/ecot.12138
• Languages: English
• ISSNs: 0967-0750

Abstract

Abstract: This paper investigates the effects of house price appreciation on homeowners' labour force participation (LFP). Although economic theories predict that housing capital gains will reduce labour supply, empirical evidence from urban China revealed that house price appreciation significantly boosts homeowners' LFP. Heterogeneous analyses indicate that LFP behaviour is more likely to be affected by house price appreciation for female and younger homeowners. Furthermore, homeowners living in provinces with greater house price appreciation tend to be more active in job participation than those living in provinces with lower price appreciation.