TY - JOUR
T1 - Long-Run Labor Costs of Housing Booms and Busts
AU - Begley, Taylor
AU - Haslag, Peter
AU - Weagley, Daniel
N1 - Publisher Copyright:
© 2023 Cambridge University Press. All rights reserved.
PY - 2023
Y1 - 2023
N2 - We show large flows of workers into the real estate agent occupation (REA) during the early 2000s from virtually all parts of the skill, wage, and education spectrums. We find those entering REA in MSAs with house price bubbles end up in occupations paying significantly less in the long-run as compared to similar REA entrants in non-bubble areas. Even in 2017, when house prices and employment return to their pre-crisis levels, REA entrants in Bubble MSAs are in occupations earning about 6% less. These results point to lasting effects of labor allocation decisions in response to distorted price signals.
AB - We show large flows of workers into the real estate agent occupation (REA) during the early 2000s from virtually all parts of the skill, wage, and education spectrums. We find those entering REA in MSAs with house price bubbles end up in occupations paying significantly less in the long-run as compared to similar REA entrants in non-bubble areas. Even in 2017, when house prices and employment return to their pre-crisis levels, REA entrants in Bubble MSAs are in occupations earning about 6% less. These results point to lasting effects of labor allocation decisions in response to distorted price signals.
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U2 - 10.1017/S0022109023001060
DO - 10.1017/S0022109023001060
M3 - Article
AN - SCOPUS:85172399583
SN - 0022-1090
JO - Journal of Financial and Quantitative Analysis
JF - Journal of Financial and Quantitative Analysis
ER -