Research On The Impact Of Regional House Price On Labor Supply Of Urban Households

Since China began to reform the urban housing system in 1998,the level of housing prices in our country has experienced a long-term and substantial increase,which also means that urban households with houses has obtained large amounts of housing assets.At the same time,in recent years,the decline in labor participation rate is an important trend in Chinese labor market.From 78.37% in 1997 to 68.24% in2019,it has experienced a drop of 10 percentage points in 22 years.Exploring the reasons for the rapid decline in labor participation rate is certainly closely related to the marketization of labor employment,but according to labor economics theory,non-labor income has an important impact on the supply of household labor.To a certain extent,can the increase in housing assets brought about by the rapid rise in housing prices explain the decline in Chinese labor participation? If there is an impact,what is the impact mechanism? These issues require in-depth research and analysis by the academic community.In view of this,this article comprehensively uses a variety of methods,adopts CHFS 2015-2017 micro-data at the individual and household level,and integrates with the provincial-level macro data to examine the impact of regional housing prices on the labor supply of urban households with houses.The housing debt factor was also considered in this process.The research results show that:(1)Regional housing prices has a significant negative impact on labor participation and working hours of urban households with houses.(2)After considering the scale of housing debt,the net housing assets determined by the housing prices and housing debt will inhibit the labor supply of urban households with houses.When verifying the mechanism of the cost effect,the sample of households with houses is divided into two categories:smaller housing debt and larger housing debt.The level of housing prices still has a significant negative impact on the labor supply of households with smaller housing debt,which shows that the housing wealth effect is dominant in the restraint of labor supply at this time.On the contrary,when the scale of household housing debt exceeds the average size of housing debt,the debt servicing pressure caused by housing debt makes the cost effect dominate,thereby positively promoting the supply of household labor.This also shows that the impact of housing prices on the labor supply of urban households is the result of the combined effect of housing assets and liabilities.In addition,the housing investment effect has a positive impact on the labor supply of families with houses but still planning to purchase houses.The main contributions of the full text are as follows:(1)Based on the fact that the level of housing prices in our country remains high,the impact of regional housing prices on the labor supply behavior of urban households is investigated,and the impact of housing debt factors is considered.The article identifies the three mechanisms of the housing prices on household labor supply and examines them in turn,discussing the reasons for the decline in labor participation rate in our country from the supply level.(2)Comprehensively using the panel data of macro and micro integration,under the premise of overcoming the endogenous problem of the model,the paper analyzes the difference of the impact of housing prices on labor supply of households of different ages,different educational backgrounds,different regions,and different number of houses through heterogeneity analysis.