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

Andrew Henley

Research output: Contribution to journalArticlepeer-review

40 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)439-456
JournalOxford Bulletin of Economics and Statistics
Volume66
Issue number4
DOIs
Publication statusPublished - 01 Sept 2004

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