Study on the Impact of Housing Price on the Heterogeneous Labor Force

Abstract

The talents have become a key engine to promote the economic development in the new economic era. The 20th National Congress of the Communist Party of China also pointed out that China should rely on talents to build a strong country. Regarding talent attraction and aggregation in cities, housing price is an important factor. In order to study the impacts of housing price, from the heterogeneous labor perspective, this paper uses data of National 1% Population Sampling Survey 2005-2015, and the National Census 2010 for empirical analysis, discussing the relationship between housing price and the heterogeneity of the labor force. The study finds that: (1) The housing price does not reduce skilled and labor force accumulation; (2) The housing price has an inverted U-shaped relationship with skilled labor and ordinary labor. When the housing price exceeds a certain critical value, the uncertainty brought by the rising housing price and the pressure of rising cost play a dominant role and hinder the accumulation of the two types of labor; (3) Compared with small and medium-sized cities, the impact of rising housing price in big cities on the accumulation of the labor force is still significant, and the impact on the ordinary labor force is more obvious. The conclusion of this paper is of great significance to the implementation of the talent country and the proper strategies to deal with the relationship between housing price and labor force in the new era.