• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKIGoogle ScholarCrossref
    • E-mail: joebm.editor@gmail.com
JOEBM 2022 Vol.10(1): 1-8 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.1.665

The Effects of Housing Price on Unemployment Rate and Stock Market

Nan Sun

Abstract—House price has always been the focus of people's attention. At present, previous studies have drawn different conclusions by analyzing the effects of housing price to unemployment rate and the stock market through different methods and theories. Therefore, this paper mainly analyzes from theoretical perspective based on macroeconomics, financial market, mass psychology and national conditions by combining some data basis, try to find the common ground of these existing conclusions and study the real impact from housing price on unemployment and stock market in China. The results show that the effect of housing price to unemployment rate is positively correlated in the long run and negatively correlated in the short run; the effects of house price on stock price tends to be positively correlated in China. The advice for China's housing market is that the government needs to both curb excessive price growth and ensure a soft landing, as well as enact property purchase restrictions and improve housing mechanisms.

Index Terms—Housing price, unemployment rate, stock market, wealth effect theory.

Nan Sun is with the University of Birmingham, UK (e-mail: nxs718@alumni.bham.ac.uk).

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Cite:Nan Sun, "The Effects of Housing Price on Unemployment Rate and Stock Market," Journal of Economics, Business and Management vol. 10, no. 1, pp. 1-8, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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