Wealth, labor supply and life satisfaction: The case of urban housing demolition in China
Date of Original Version
This paper provides new evidence from China for the causal relationship between wealth and labor supply, using the case of the large-scale urban housing demolition (UHD) in China resulting from extensive urban renewal and real estate development. Employing the difference-in-differences approach and a nationally representative sample, we find that UHD produces substantial wealth growth for affected households and, consequently reduces individual labor supply in the extensive margin and improves individual life satisfaction, especially for women. Our results may offer insights into the emerging labor shortage in China.
Li, Feng, Jing Jian Xiao, and Feiying Cai. "Wealth, labor supply and life satisfaction: The case of urban housing demolition in China." Economics Letters 183, (2019). doi:10.1016/j.econlet.2019.108597.