House Price Shocks, Windfall Gains and Hours of Work: British Evidence

18 Pages Posted: 28 Aug 2004

See all articles by Andrew Henley

Andrew Henley

Cardiff Business School, Cardiff University; IZA Institute of Labor Economics

Abstract

Do workers adjust hours of work in response to capital gains and losses? This paper investigates this question using British panel data on individual employees from 1992 to 2001. It investigates hours of work adjustments to two sources of capital gain: financial windfalls and real housing wealth gains. Significant reductions in hours are found for both men and women in response, in particular, to housing gains. Men appear to increase hours in response to real housing losses, whereas women reduce hours in response to real housing gains. Evidence on hours of work preferences suggests that observed adjustments are only partial responses.

Suggested Citation

Henley, Andrew, House Price Shocks, Windfall Gains and Hours of Work: British Evidence. Available at SSRN: https://ssrn.com/abstract=573034

Andrew Henley (Contact Author)

Cardiff Business School, Cardiff University ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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