Dream Chasers: The Draw and the Downside of Following House Price Signals

54 Pages Posted: 21 Apr 2020 Last revised: 17 Dec 2020

See all articles by Taylor A. Begley

Taylor A. Begley

Washington University in St. Louis - John M. Olin Business School

Peter H. Haslag

Vanderbilt University - Finance

Daniel Weagley

Georgia Institute of Technology - Scheller College of Business

Date Written: December 16, 2020

Abstract

We study labor re-allocation during the 2000s house price boom using detailed career-path data for 32 million workers. We show large flows of workers into realty from virtually all parts of the skill, wage, and education spectrums, especially following instances of strong local house price growth. Those drawn in during the peak ended up in careers paying substantially less than non-entrants that were working in the same occupation and MSA. Comparing within entrants, those in areas with higher non-fundamental house price growth end up in significantly lower-paying occupations. These disparities persist through the end of our sample in 2017.

Keywords: House Prices, Human Capital, Job Switching, Career Choice, Real Estate Agents

JEL Classification: E32, J24, J31, R21, R31

Suggested Citation

Begley, Taylor A. and Haslag, Peter H. and Weagley, Daniel, Dream Chasers: The Draw and the Downside of Following House Price Signals (December 16, 2020). Vanderbilt Owen Graduate School of Management Research Paper, Available at SSRN: https://ssrn.com/abstract=3577828 or http://dx.doi.org/10.2139/ssrn.3577828

Taylor A. Begley (Contact Author)

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

HOME PAGE: http://www.taylorbegley.com

Peter H. Haslag

Vanderbilt University - Finance ( email )

401 21st Avenue South
Nashville, TN 37203
United States

HOME PAGE: http://https://www.sites.google.com/site/peterhaslag/

Daniel Weagley

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States
(404) 385-3015 (Phone)

HOME PAGE: http://www.danielweagley.com

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