The effect of housing wealth shocks on work and retirement decisions

Jaclene Begley, Sewin Chan

Research output: Contribution to journalArticle

Abstract

Using panel data from 2000 to 2012, we show that unanticipated zip code-level shocks to home values affect retirement, retirement reversals, and Social Security claims. Among older men, homeowners experiencing moderately negative housing price shocks are less likely to retire, more likely to reverse retirement in some cases, and more likely to delay claiming Social Security relative to those experiencing positive shocks. We find similar responses among specific subgroups of older women, though not in general. Overall, our results imply that adverse housing shocks have substantial influence on labor market participation for older individuals.

Original languageEnglish (US)
Pages (from-to)180-195
Number of pages16
JournalRegional Science and Urban Economics
Volume73
DOIs
StatePublished - Nov 1 2018

Fingerprint

retirement
social security
housing
homeowner
panel data
labor market
participation
decision
effect
Housing wealth
Retirement
Values
Social security

Keywords

  • Housing wealth
  • Retirement
  • Retirement reversals
  • Social Security
  • Unanticipated shocks

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

Cite this

The effect of housing wealth shocks on work and retirement decisions. / Begley, Jaclene; Chan, Sewin.

In: Regional Science and Urban Economics, Vol. 73, 01.11.2018, p. 180-195.

Research output: Contribution to journalArticle

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