Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 1175-1206 |
| Journal | Housing Studies |
| Volume | 33 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 2019 |
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Keywords
- BRITAIN
- CONSEQUENCES
- CONSUMPTION
- GERMANY
- HOME-OWNERSHIP
- HOUSEHOLD WEALTH
- HOUSING WEALTH
- Home ownership
- LIFE-COURSE
- REGIMES
- comparative housing
- homemaking
- housing investment
- saving
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Homeownership, saving and financial wealth : A comparative and longitudinal analysis. / Lersch, Philipp M.; Dewilde, C.L.
In: Housing Studies, Vol. 33, No. 8, 2019, p. 1175-1206.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - Homeownership, saving and financial wealth
T2 - A comparative and longitudinal analysis
AU - Lersch, Philipp M.
AU - Dewilde, C.L.
PY - 2019
Y1 - 2019
N2 - The finding that homeowners own more non-housing wealth than tenants is well known. We examine whether the higher financial wealth of owners can be partly explained with increases in saving when becoming a homeowner in two distinct institutional contexts. Using longitudinal data for the UK (British Household Panel Survey) and Germany (Socio-Economic Panel Study), we find that homeowners save more and are financially wealthier than tenants. However, when controlling for time-constant selection into homeownership, upon entering homeownership households reduce their probability to save in Germany and reduce their average saving rate in Germany and the UK. For Germany, there is some evidence that processes of homemaking (family formation and home improvement) lead to less saving. For the UK, we find no evidence that increasing home equity over time discourages saving. Finally, tenants do not compensate for their lack of housing wealth by accumulating more non-housing wealth over time. This disadvantage for tenants seems more pronounced in the UK compared to Germany.
AB - The finding that homeowners own more non-housing wealth than tenants is well known. We examine whether the higher financial wealth of owners can be partly explained with increases in saving when becoming a homeowner in two distinct institutional contexts. Using longitudinal data for the UK (British Household Panel Survey) and Germany (Socio-Economic Panel Study), we find that homeowners save more and are financially wealthier than tenants. However, when controlling for time-constant selection into homeownership, upon entering homeownership households reduce their probability to save in Germany and reduce their average saving rate in Germany and the UK. For Germany, there is some evidence that processes of homemaking (family formation and home improvement) lead to less saving. For the UK, we find no evidence that increasing home equity over time discourages saving. Finally, tenants do not compensate for their lack of housing wealth by accumulating more non-housing wealth over time. This disadvantage for tenants seems more pronounced in the UK compared to Germany.
KW - BRITAIN
KW - CONSEQUENCES
KW - CONSUMPTION
KW - GERMANY
KW - HOME-OWNERSHIP
KW - HOUSEHOLD WEALTH
KW - HOUSING WEALTH
KW - Home ownership
KW - LIFE-COURSE
KW - REGIMES
KW - comparative housing
KW - homemaking
KW - housing investment
KW - saving
UR - https://app-eu.readspeaker.com/cgi-bin/rsent?customerid=10118&lang=en_us&readclass=rs_readArea&url=https%3A%2F%2Fwww.tandfonline.com%2Fdoi%2Ffull%2F10.1080%2F02673037.2018.1424803
U2 - 10.1080/02673037.2018.1424803
DO - 10.1080/02673037.2018.1424803
M3 - Article
VL - 33
SP - 1175
EP - 1206
JO - Housing Studies
JF - Housing Studies
SN - 0267-3037
IS - 8
ER -