Labour Market Fluctuations and the Housing Net Worth Channel in the EU

The credit-driven housing net worth channel has been identified as a determinant of the sharp drop in US employment between 2007 and 2009. We examine impact this on labour market EU using panel data for 20 countries covering period 1996 to 2017. This saw substantial changes both credit provision performance EU. full sample results show wealth having significant influence total its traded non-traded components, with one per cent change being associated about 0.2 employment. Coefficient values are larger when dependent variable, while effect is greater negative shocks occur. In contrast evidence, we find wage responses arising