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IFS Working Papers
January 2004 W04/09
Article
Labour market participation and mortgage related borrowing constraints
Type: IFS Working Papers
Authors: Renata Bottazzi
ISSN: 1742-0415
Volume, issue, pages: 28 pp
JEL classification: J40, D91
Keywords: Mortgages, labour market participation, women

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This paper analyses the relationship between female labour market participation and mortgage commitments in life-cycle set up. In particular it examines whether a mortgage qualification constraint has any effect on female labour market participation. This is done by conditioning on the mortgage decision in a labour market participation equation for married women. Endogeneity of the mortgage variable is tested using house price data. Panel data from the British Household Panel Study is used in order to control for unobserved heterogeneity in participation.

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