IDEAS home Printed from https://ideas.repec.org/p/aia/ginidp/32.html
   My bibliography  Save this paper

GINI DP 32: Income Inequality and Access to Housing in Europe

Author

Listed:
  • Caroline Dewilde

    (TS Social and Behavioral Sciences, Tilburg University)

  • Bram Lancee

    (Research unit Migration, Integration, Transnationalization, Social Science Research Center Berlin (WZB))

Abstract

This paper analyses the relation between income inequality and access to housing for low- income households. Three arguments are developed, explaining how inequality might affect housing affordability, quality and quantity. First, it is the absolute level of resources, not their relative distribution, which affects access to housing. Second, inequality affects access to housing in different ways, due to rising aspirations and status competition. Third, the effect of inequality is mediated by housing market pressures. Multilevel-models for 28 countries indicate that: 1) there is no relation between inequality and housing affordability – the level of resources matters, rather than their distribution; 2) there exists a positive relation between inequality and crowding for owners; 3) higher levels of income inequality are associated with lower housing quality for owners and renters. Although there is a relation between inequality and access to housing, it is complex and not mediated by our indicator of house price-changes. Key words: Income inequality, low incomes, housing conditions, comparative research, Europe.

Suggested Citation

  • Caroline Dewilde & Bram Lancee, 2012. "GINI DP 32: Income Inequality and Access to Housing in Europe," GINI Discussion Papers 32, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginidp:32
    as

    Download full text from publisher

    File URL: https://www1.feb.uva.nl/aias/DP32-Dewilde,Lancee.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matlack, Janna L. & Vigdor, Jacob L., 2008. "Do rising tides lift all prices? Income inequality and housing affordability," Journal of Housing Economics, Elsevier, vol. 17(3), pages 212-224, September.
    2. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    3. Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
    4. Dan Andrews & Aida Caldera Sánchez, 2011. "Drivers of Homeownership Rates in Selected OECD Countries," OECD Economics Department Working Papers 849, OECD Publishing.
    5. Robert J. Shiller, 2007. "Understanding recent trends in house prices and homeownership," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 89-123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Danny Ben-Shahar & Jacob Warszawski, 2016. "Inequality in housing affordability: Measurement and estimation," Urban Studies, Urban Studies Journal Limited, vol. 53(6), pages 1178-1202, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caroline Dewilde, 2011. "GINI DP 18: The interplay between economic inequality trends and housing regime changes in advanced welfare democracies," GINI Discussion Papers 18, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. Hongwei Dong, 2018. "The impact of income inequality on rental affordability: An empirical study in large American metropolitan areas," Urban Studies, Urban Studies Journal Limited, vol. 55(10), pages 2106-2122, August.
    3. Clara Mulder & Caroline Dewilde & Mark Duijn & Annika Smits, 2015. "The Association Between Parents’ and Adult Children’s Homeownership: A Comparative Analysis," European Journal of Population, Springer;European Association for Population Studies, vol. 31(5), pages 495-527, December.
    4. Boehm, Thomas P. & Schlottmann, Alan M., 2014. "The dynamics of housing tenure choice: Lessons from Germany and the United States," Journal of Housing Economics, Elsevier, vol. 25(C), pages 1-19.
    5. Cenkhan Sahin, 2016. "Macroeconomic effects of mortgage interest deduction," DNB Working Papers 514, Netherlands Central Bank, Research Department.
    6. Theresa Kuchler & Monika Piazzesi & Johannes Stroebel, 2022. "Housing Market Expectations," CESifo Working Paper Series 9665, CESifo.
    7. Ilari Ilmakunnas & Lauri Mäkinen, 2021. "Age Differences in Material Deprivation in Finland: How do Consensus and Prevalence-Based Weighting Approaches Change the Picture?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 393-412, April.
    8. Luc Laeven & Alexander Popov, 2016. "A Lost Generation? Education Decisions and Employment Outcomes during the US Housing Boom-Bust Cycle of the 2000s," American Economic Review, American Economic Association, vol. 106(5), pages 630-635, May.
    9. Núria Rodríguez‐Planas, 2018. "Mortgage finance and culture," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 786-821, September.
    10. Hertrich Markus, 2019. "A Novel Housing Price Misalignment Indicator for Germany," German Economic Review, De Gruyter, vol. 20(4), pages 759-794, December.
    11. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    12. Stephanie Moulton & Cäzilia Loibl & Anya Samak & J. Michael Collins, 2013. "Borrowing Capacity and Financial Decisions of Low-to-Moderate Income First-Time Homebuyers," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(3), pages 375-403, November.
    13. Philip Arestis Author-Email: pa267@cam.ac.uk & Ana Rosa Gonzalez-Martinez, 2017. "Housing Market in Israel: Is there a Bubble?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 64(1), pages 1-16, December.
    14. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.
    15. Gerardi Kristopher & Willen Paul, 2009. "Subprime Mortgages, Foreclosures, and Urban Neighborhoods," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(3), pages 1-37, March.
    16. van Ham, Maarten & Williamson, Lee & Feijten, Peteke & Boyle, Paul, 2010. "Right to Buy… Time to Move? Investigating the Effect of the Right to Buy on Moving Behaviour in the UK," IZA Discussion Papers 5115, Institute of Labor Economics (IZA).
    17. Nobili, Andrea & Zollino, Francesco, 2017. "A structural model for the housing and credit market in Italy," Journal of Housing Economics, Elsevier, vol. 36(C), pages 73-87.
    18. Zhao, Qingbin & Li, Guoqiang & Gu, Xinhua & Lei, Chun Kwok, 2021. "Inequality hikes, saving surges, and housing bubbles," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 349-363.
    19. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    20. Dan Andrews, 2010. "Real House Prices in OECD Countries: The Role of Demand Shocks and Structural and Policy Factors," OECD Economics Department Working Papers 831, OECD Publishing.

    More about this item

    Keywords

    income inequality; low incomes; housing conditions; comparative research; europe.;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aia:ginidp:32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiemer Salverda (email available below). General contact details of provider: https://edirc.repec.org/data/aiuvanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.