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Economic Hardship, Housing Cost Burden and Tenure Status: Evidence from EU-SILC

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  • Manuela Deidda

Abstract

The primary goal of this study is to contribute on the literature on poverty by looking at household economic hardship in relation to the housing cost burden. Being one of the most significant outlays in a household balance, housing costs may indeed cause households to reduce non-housing expenditure such as health care, education, food, and clothing, thus creating serious household economic hardship. Using microdata from the European Union Statistics on Income and Living Conditions dataset (EU-SILC) regarding five European countries (Italy, Germany, UK, Spain, and France) we have examined the predictive power of housing costs in explaining family economic hardship. Furthermore, we have jointly estimated the effect of the housing cost burden upon economic hardship for renters versus home-owners paying mortgages. Results showed that housing costs represent a non negligible burden in all the five European countries. Moreover, home ownership was found to significantly reduce household hardship status. Copyright Springer Science+Business Media New York 2015

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  • Manuela Deidda, 2015. "Economic Hardship, Housing Cost Burden and Tenure Status: Evidence from EU-SILC," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 531-556, December.
    • Handle: RePEc:kap:jfamec:v:36:y:2015:i:4:p:531-556
    DOI: 10.1007/s10834-014-9431-2
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    2. Jing You & Xinxin Ding & Miguel Niño-Zarazúa & Sangui Wang, 2015. "Lofty pine and clinging vine: The educational 'Great Gatsby Curve' and the role of house prices," WIDER Working Paper Series wp-2015-147, World Institute for Development Economic Research (UNU-WIDER).
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    9. César García‐Gómez & Ana Pérez & Mercedes Prieto‐Alaiz, 2021. "Copula‐based analysis of multivariate dependence patterns between dimensions of poverty in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 165-195, March.
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    More about this item

    Keywords

    Financial distress; Household finance; Housing cost burden; Tenure status; D12; D14; C24;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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