Parental Housing Wealth, Job Search, and Labor Market Outcomes

Abstract

This paper examines the effects of parental housing wealth on job search behavior of their children. I exploit variation in parental housing wealth generated by short-run housing market fluctuations within municipalities over time and housing types. I document weak evidence that parental housing wealth delays the transition from college to work at both the extensive and intensive margins. The extensive margin is driven by postgraduate schooling among high-income children, whereas the intensive margin is driven by job-related exam preparations among lowincome children. Parental housing wealth does not improve labor market outcomes.

Keywords: Parental housing wealth, School-to-work transitions, job search

JEL Classification: J2, J64