The Influence Of House Price On Labor Supply Decision

Since the vigorous launch of reform and opening up in the 1970 s,China’s overall economic structure has also undergone great changes under the background of rapid economic development.From the macro economic perspective,the proportion of individual income and consumption in GDP is gradually decreasing.On the micro level,on the one hand,as an important asset class,the real estate prices are constantly rising,and its market size is also expanding.In contrast,the employment rate of our residents has declined,but the working hours of workers have increased.Because the house prices have risen sharply will lead to the rapid increase of their wealth,wealth accumulation is brought by the income effect will speed up free replacement of labor supply,so the price changes lead to changes in wealth,in turn,the impact of labor supply of laborers,and the mechanisms behind,can be added the new explanation for China’s labor supply.In order to explore the mechanism behind these phenomena,and through the financial investigation data in 2017 and 2015 family(CHFS)samples are discussed,based on the wealth effect of housing prices,discussed under the background of "Chinese characteristics",the housing prices to the influence of the laborer labor supply decisions,expanded the scope of the research object,focus on the impact of house prices for labor supply time,It enriches the existing research on labor supply theory and puts forward some relevant suggestions for the national policy planning.In this thesis,housing price is selected as the core independent variable,and labor participation in the individual market and monthly labor hours are selected to measure the decision-making situation of labor supply.And refer to the existing theory to analyze the depth of the impact of housing prices on individual labor supply decision-making mechanism;Descriptive analysis is used to discuss the data status of the sample,and obtain the preliminary labor supply and real estate related information of the sample.Probit model and Tobit model were used for empirical analysis to solve the problem of sample selectivity bias,and corresponding instrumental variables and alternative variables were used to solve the problems of reverse causality and measurement error.And through the threshold regression and the mediation effect of measurement method to explore the effect of housing price of labor supply mechanism,and finally to the housing property and individuals in the sample have workers’ age,gender,education,type of work specific differences,the prices on the individual heterogeneity affect labor supply decisions.The results show that :(1)the increase of housing price leads to the decline of labor participation and the increase of labor supply time;(2)As real wages adjuste d for house prices gradually rise,working hours decrease first,then increase,and then decrease again;(3)housing price has a significant positive mediating effect on labor supply time through promoting the increase of housing value and rent;(4)The housing wealth effect of labor supply of workers with different housing types is different;(5)The marginal impact of housing price rise on labor supply decision-making shows obvious heterogeneity.In order to stimulate employment,reduce the situation of "overwork" and meet the housing needs of individuals,the following suggestions can be put forward based on the conclusion of this thesis: strengthen the construction of education system,strengthen the quality of vocational skills training in the human resource market;The government should strengthen the control of the housing market,so that housing prices can be sustained at an appropriate level;The moderately loose credit policy combined with the house purchase policy,let the workers bear the right amount of mortgage to stimulate their market labor supply level;Provide policy support for young people to buy houses;Reasonable planning of local housing construction arrangements.