Chinese Real Estate And Employment-Lessons And Implications Of "Spanish Disease"

Many scholars have studied why the Spanish unemployment rate is high and lasting from different aspects, such as Spanish have suffered different impact, including self-development model of Franco period, the negative impact of the supply, the upgrading of women's labor participation rate; in addition, Spain have rigid labor market system, including higher unemployment benefits, high labor protection and so on. This article studies Spanish unemployment from Spanish real estate market, select two indicators, to illustrate the effects of the real estate market on the unemployment problem from different aspects. First, we studies the relationship of home ownership and unemployment rate, using the data of the major developed countries in Europe and America to frame a simple linear model, found that rates of home ownership have a significant impact on the unemployment rate through migration and transaction costs; then we introduce the Spanish real estate bubble, including the bubble's formation process and the impact on macroeconomics especially on unemployment.The study of the relationship between Spanish real estate market and the employment market has some references to China. Now China's unemployment problem are still quite serious, although compared with other countries China's official registered unemployment rate is at a low level, many scholars have criticized these data and put forward some other different calculation methods. Because the collection of the data of the rate of home ownership is not perfect and compared to the developed countries the definition of the rate of home ownership is different, the selected indicators of the real estate market is mainly price. We use the VAR model to study the relationship between the real estate market and the labor market. We find that, at this stage, the positive impact of housing prices in the long term raise the unemployment in our country, mainly through influencing our consumption, the development of tertiary industry, and wage; the labor market variables also affect the house prices, the rise of wage and the unemployment also push price up. Finally, according to China's actual conditions, combined with the analysis of the relationship between the Spanish labor markets and the real estate market, we propose some relevant policy recommendations.