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borrowing constraints

By Renata Bottazzi, Renata Bottazzi, James Banks, Laura Blow, Martin Browning, Ian Crawford, Hamish Low and To Erich Battistin

Abstract

This paper analyses the relationship between female labour market participation and mortgage commitments in a 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. Acknowledgements: I wish to thank my supervisors Richard Blundell and Ian Preston for their continuous help and support. I am also grateful to Orazio Attanasio

Year: 2004
OAI identifier: oai:CiteSeerX.psu:10.1.1.195.9600
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