Housing Wealth, Property Taxes, and Labor Supply among the Elderly

Zhao, Lingxiao; Burge, Gregory S.

doi:10.1086/687534

Cited by 59 publications

(23 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Older people running one-person households are a heterogeneous group because of their different socio-economic and demographic characteristics, which affects the different living standards in these households. This statement is also confirmed by other studies review [62][63][64][65].…”

Section: Discussionsupporting

confidence: 84%

Living Standards in One-Person Households of the Elderly Population

Piekut

2020

Sustainability

View full text Add to dashboard Cite

The number of one-person households of the elderly continues to rise in developed countries. The study assesses the standard of living in this type of households. The aim of this study is to explore the standard of living of single older adults (60+) in Poland by focusing on the relationship between demographic and socio-economic factors as well as their objective financial situation and subjective satisfaction on their financial and consumption standards. To evaluate the standard of living in one-person households run by people aged 60 and over, the aggregate (composite) indicator was designed, based on the Economic Living Standard Index method. The key issues relating to multifaceted aspects of sustainable development are both the level and the quality of life. It can be concluded that the elderly people running one-person households constitute a group that is heterogeneous due to their different socio-economic and demographic characteristics, which in turn affect their various living standards. The highest standard of living can be noticed in the households run by white-collar workers, self-employed persons and well educated persons. The lowest standard of living can be observed in the households run by groups of people including farmers, people having income from social sources (without pensions), living on supplementary welfare allowance and persons with lower education level (secondary, primary or less). Remedial measures should be taken for these social groups. The key factors determining the standard of living in one-person households of the elderly are socioeconomic status and education level.

show abstract

Section: Discussionsupporting

confidence: 84%

Living Standards in One-Person Households of the Elderly Population

Piekut

2020

Sustainability

View full text Add to dashboard Cite

show abstract

“…At the micro level, the consumption‐wealth link may also be jointly determined by unobservable household‐specific characteristics. For example, those households having a strong propensity to consume may concurrently have strong motives to accumulate wealth leading to a higher likelihood to receive wealth gains (Zhao and Burge ). To control for potential bias resulting from endogeneity issues, we exploit the structural benefits of panel data and employ a first‐differenced version of regression Equation as follows:

\begin{matrix} true \\ right normalΔ l n false(C normalonsumptio n_{ijt} false) & = & left β_{0, 3} + β_{1, 3} normalΔ l n ({HValue}_{ijt}) + β_{2, 3} normalΔ l n ({FVlaue}_{ijt}) \\ left + β_{3, 3} normalΔ l n ({Deposit}_{ijt}) + β_{4, 3} normalΔ I n ({HMortgage}_{ijt}) \\ left + β_{5, 3} normalΔ In ({HIncome}_{ijt}) + δ_{3} normalΔ X_{ijt} + normalΔ ε_{ijt}, \end{matrix}

where

Δ l n (C normalonsumptio n_{i j t})

represents the change in the log value of consumption between sample periods or the one‐period growth rate of consumption.…”

Section: Data and Econometric Methodologymentioning

confidence: 99%

“…First, unobserved time‐unvarying characteristics of individuals and households that affect both household wealth and consumption are excluded from the estimation. Second, if respondents have consistent evaluation errors on self‐reported values, the first differenced self‐reported values should be more accurate because they control for any persistent overstated or understated components (Zhao and Burge ).…”

Section: Data and Econometric Methodologymentioning

confidence: 99%

Housing, Wealth, Income and Consumption: China and Homeownership Heterogeneity

Chen

Hardin

2018

Real Estate Economics

View full text Add to dashboard Cite

Impacts on consumer spending in urban China associated with housing value, housing equity, financial assets and household income are evaluated using longitudinal data from the China Family Panel Studies (CFPS) survey. Findings suggest that the housing wealth effect on household consumption in China is much larger than has been shown for developed economies. The larger impact is prospectively related to structural limits on investing which favor real estate ownership, along with the dominant position of housing in total household wealth. We also find that a household's consumption varies across housing tenure. Homeowners having joint ownership of property on average have the highest consumption propensity, while those having sole ownership of property consume the most in response to appreciation in housing wealth.

show abstract

“…We extend the standard two-period life-cycle model of Rossi and Trucchi (2016) to a three-period set-up and, following Hurst and Stafford (2004) and Bhutta and Keys (2016), explicitly incorporate home ownership, mortgage borrowing, house price appreciation, home equity extraction, and collateral constraints to capture the key features of the Texas housing 7 A more distinct stream of research has explored the relationship between the broader housing market and labor supply, generally finding negative wealth effects of house price growth, consistent with leisure being a normal good (Atalay, Barrett, & Edwards, 2016;Disney and Gathergood, 2013;Milosch, 2014;Fu, Liao, & Zhang, 2016;Bottazzi, Trucchi, & Wakefield, 2017;Zhao and Burge, 2017). But a consensus on the effect of house price growth on labor supply remains elusive.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Labor Market Effects of Credit Constraints: Evidence from a Natural Experiment

Kumar¹,

Liang²

2019

View full text Add to dashboard Cite

We exploit the 1998 and 2003 constitutional amendment in Texas-allowing home equity loans and lines of credit for non-housing purposes-as natural experiments to estimate the effect of easier credit access on the labor market. Using state-level as well as micro data and the synthetic control approach, we find that easier access to housing credit led to a notably lower labor force participation rate between 1998 and 2007. We show that our findings are remarkably robust to improved synthetic control methods based on insights from machinelearning. We explore treatment effect heterogeneity using grouped data from the basic monthly CPS and find that declines in the labor force participation rate were larger among females, prime age individuals, and the college-educated. Our research shows that negative labor market effects of easier credit access should be an important factor when assessing its stimulative impact on overall growth.

show abstract

Housing Wealth, Property Taxes, and Labor Supply among the Elderly

Cited by 59 publications

References 50 publications

Living Standards in One-Person Households of the Elderly Population

Living Standards in One-Person Households of the Elderly Population

Housing, Wealth, Income and Consumption: China and Homeownership Heterogeneity

Labor Market Effects of Credit Constraints: Evidence from a Natural Experiment

Contact Info

Product

Resources

About