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CANCELLED: Richard Disney (IFS)

26 June 2014 @ 12:15

 

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Date:
26 June 2014
Time:
12:15
Event Category:
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CeRP Seminar: “House Prices, Wealth Effects and Labor Supply”

Sala Rossa

abstract

We examine the impact of housing wealth on labor supply using data on exogenous local variation in house prices merged into household panel data for Britain. Our estimates are conditioned on variations in local labor demand and income expectations as these may co-determine housing wealth and labor supply. We use renters as a control group and test for the potential endogeneity of tenure and location. We find significant housing wealth effects on labor supply consistent with leisure being a normal good. Labor supply is particularly sensitive to housing wealth among younger men and women and among older men.