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Labour supply and the cost of house price booms and busts

Abstract:
Fluctuations in house prices generate substantial heterogeneity in the price of purchase of similar dwellings depending on the time of purchase. These differences in the price of purchase have large effects on income-net-of-housing-costs. We document these effects using the large house price fluctuations during the recent housing boom-bust in Spain. Households can mitigate these impacts through changing labour supply. Men work more subsequent to paying higher house prices at purchase, whereas the correlation of house prices and labour supply for women is driven by selection: households where women work more, buy more expensive houses.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.labeco.2024.102591

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
Nuffield College
Role:
Author
ORCID:
0000-0002-6064-9448


Publisher:
Elsevier
Journal:
Labour Economics More from this journal
Volume:
90
Article number:
102591
Publication date:
2024-06-18
Acceptance date:
2024-06-14
DOI:
EISSN:
1879-1034
ISSN:
0927-5371


Language:
English
Keywords:
Pubs id:
2015839
Local pid:
pubs:2015839
Deposit date:
2025-03-24
ARK identifier:

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