, Volume 11, Issue 1, pp 55-82

Housing and labor decisions of households

Abstract

In this paper, we analyze the relationship between the demand for housing and the family employment. To do so, we develop an economic model and use a sample of Spanish households to analyze the housing tenure choice (ownership or rental of the house) and the demand for housing in relation to family labor decisions. We have gone beyond previous studies by incorporating the discrete decisions of tenure choice and the participation of women in the labor market, proving that these decisions are interrelated and broadening the scope of our findings and conclusions. We obtained an important description of the effect of economic factors on housing and labor decisions and demonstrated that a change in a family’s employment decisions affects housing decisions and vice versa. In addition, we determined to what extent housing and labor decisions are affected by changes in the wife’s educational level and changes in family composition. Our findings show that the labor decisions have more sensitivity than housing decisions to these changes.