Housing liquidation and financial adequacy of retirees in New Zealand

Noviarini, Jelita; Coleman, Andrew; Roberts, Helen; Whiting, Rosalind H.

doi:10.1080/02673037.2019.1585522

Cited by 3 publications

(1 citation statement)

References 27 publications

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“…It is widely recognised that housing liquidity can be capitalised in housing prices (Head and Lloyd-Ellis, 2012; Head et al ., 2014). The previous literature also shows that assets with a higher liquidity level are often more desirable, because they enable people to respond flexibly to retirement events, raise the marginal utility of consumption and improve the financial adequacy of retirees significantly (Carroll, 1997; Noviarini et al ., 2019). To some extent, this study provides an understanding of housing liquidity in shaping the effect of home ownership on the labour market participation of older people.…”

Section: Literature Reviewmentioning

confidence: 99%

Does housing liquidity matter? Housing property rights and labour market participation of older migrants in China

Xiao

Chen

2022

Ageing and Society

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This paper adds to the literature by identifying the effect of home ownership on rural-to-urban older migrants’ labour market participation in China. Using the 2016 wave of the China Migrants Dynamic Survey, we find that older migrants who do not own houses are more likely to participate in the labour market than home owners. To alleviate endogeneity caused by the potential sample selection problem, the propensity score matching method is employed. Our results imply that home ownership can be used as a type of precautionary/retirement savings for older migrants, especially for the ones lacking in financial security. We also show that older migrants owning houses with a higher level of liquidity are less likely to participate in the labour market. It indicates that liquidity may significantly affect the effectiveness for older migrants to use home ownership as precautionary/retirement savings.

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