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House Prices Rising and Education-Income Mismatch:Yielding to Stable Preference
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TitleHouse Prices Rising and Education-Income Mismatch:Yielding to Stable Preference  
AuthorChen Hao and Zhao Chunming  
OrganizationUniversity of International Business and Economics;Beijing Normal University; 
Key WordsEducation-Income Mismatch; Risky Job-hunting Model; Stability Preferences 
AbstractThis paper firstly proves that the decreasing income of highly educated labor is caused by rising house prices , and explain the education-income mismatch. Using the model of risky job-hunting and the data from CHIPS , we find that: (1). Facing the house prices rising and widely used of mortgage , highly educated labor prefer stability job with low earnings, but in the long period, the effect of house prices rising on highly educated labor present an U curve. (2). On the whole, the reason of mismatch between labor (bachelor or above) and income is yielding to stable preference accused by house prices rising, meanwhile, housing fund and low-interest-rate loans can release the mismatch, but cannot fundamentally eliminate mismatch. (3).Yielding to stable preference has no significant effect on low educated labor only for highly, through which the efficiency of labor market will lose more. This paper also proves the reality of preference. 
Serial NumberWP1112 
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