The Great Resignation’s Relation to Housing Prices
A paper by Favilukis and Li argues that the COVID-ear Great Resignation among older workers can be explained by increases in housing wealth. For older Americans, higher house price growth is negatively and significantly associated with the probability of being in the labor force and with the number of hours worked, according to the paper. A 65-year-old homeowner’s unconditional participation rate of 44.8 percent falls to 43.9 percent if s/he experiences a 10 percent excess house price growth, the paper propounds, whereas the labor supply of middle-aged owners is relatively unresponsive to house price growth and younger owners actually work more in response to higher house price growth.
Last Updated on February 2, 2023 by Ramin Seddiq