Convergence Processes In Selected Aspects Of Households’ Wealth Conditions In European Union Countries

The aim of this article is to assess convergence processes in selected elements of household wealth situation across European Union countries over the period 2008-2019. Household wealth position is analysed indirectly, using indicators reflecting households’ living conditions and material endowment, including housing costs and their share in disposable income, the number of rooms per household, and access to a private car. The empirical analysis is based on individual, unpublished Eurostat microdata from the European Union Statistics on Income and Living Conditions (EU-SILC). The study covers the period 2008-2019. Convergence is examined using regression models commonly applied in studies of economic convergence. The analysis adopts the concept of unconditional β-convergence embedded in the neoclassical theoretical framework of the Solow-Swan growth model. The results confirm the existence of convergence processes in selected elements of households’ wealth situation within the European Union, with considerable heterogeneity in their intensity across indicators. The strongest β-convergence is observed in access to durable goods, with an estimated convergence rate of approximately 5.8% per year, while the weakest convergence is found for housing cost burdens, with annual rates ranging from 1.9% to 2.4%. The findings contribute to the existing literature by providing new micro-level empirical evidence on the convergence of household wealth situation across EU countries.