The Researchof Housing Affordability’s Effect On Urban Employment

In the backgroundof China’s new urbanization process,the floating populationsize of the total urban population has been increasing greatly,floating population has become the focus of social attention.In recent years,magnitude of housing price increases doesn’t match to the income of urbanresidents,leading to the increasing housing affordability.Especially for the agricultural transferring population,the housing problem is related toits ability to take root in the city. Atthe same time, housing problem may have a major impact on the floating labor force’s employment decisions,giving rise to the transfering of inter-city employment.Therefore,what kind of impact housing affordability’s exacerbation do on urban employment?This is the focus of this paper.Housing Price-to-IncomeRatio is being put as the metrics of housing affordability in this paper. By expanding to the new economic geography model,we found that inter-regional differences in housing affordability lead to urban floatinglabor force’stransfering of employment,thusaffecting the urban’swhole employment.On this basis,usingthe dynamic panel data model,this paper set up an empirical test on China’s35large and medium-sized cities.The results showed that the increasing relative housing affordability inter-city give rise to the relative decreasing in urban employment,reducing the relative employment rate. Moreover,consideringtherising of nominal wage,the crowding-out effectwhich due to the increasing housing affordability acting on theurban employmentrelatively decrease.The depth analysis on the secondary and tertiary industries showed thathousing affordability has an obviously crowding-out effect on the labor force of the secondary and tertiary industries;according tothe different regional level analysis.housing affordability problems are more prominent on eastern and central regions’ urban employment,the western region’s housing affordability problem is not so notable aseastern and central regions.Therefore,developing scientific and rational housing market regulation policy.controlingfast-growing of housing prices,increasing the city’s floatinglabor force, especially low-income floatinglabor force’s housing security, is necessary measures to reaching these economic goals,such as reducing the urban housing affordability.promotingthe rational allocation oflabor force and enhancing the rate of urban employment.