When home prices rise, people goof off at work

A healthy property market generally reflects a strong, well-performing economy. But when markets become excessively bullish, there can be a number of negative economic consequences, leading to pressure on policymakers to step in with cooling measures.

One effect that has not received much attention is the impact property price booms have on labour supply, in particular, whether individuals put in less effort at work and the repercussions for productivity.

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A version of this article appeared in the print edition of The Sunday Times on March 24, 2019, with the headline 'When home prices rise, people goof off at work'. Subscribe