IDEAS home Printed from https://ideas.repec.org/p/aim/wpaimx/2008.html
   My bibliography  Save this paper

Trends in intergenerational homeownership mobility in France between 1960-2015

Author

Abstract

We study intergenerational wealth mobility and its evolution in France over the period 1960-2015. More precisely, we identify the persistence of homeownership between parents and children as indicator of wealth mobility in France. We also provide evidence about different sources of heterogeneity in intergenerational homeownership associations in terms of education and geographic areas. Finally, we study the main transmission mechanism: direct financial transfers. We use all available French wealth surveys since 1986 and perform a data panelization using retrospective information. We document multiple results. First, intergenerational correlation in homeownership status has dramatically increased, particularly since the 1990s. Second, this rise is concentrated among people aged between 20 and 39 years old. Third, we observe higher wealth persistence at the top. Four, we find a strong significant effect of direct wealth transfers on the probability of becoming homeowner, which lasts 5 years. Moreover, parental support is substantially more important for households with no diploma, suggesting a crucial role of human capital on wealth formation. Finally, this phenomenon is intensified in areas with high urban concentration; highlighting the potential role of house prices as determinant of wealth social determinism.

Suggested Citation

  • Barbara Castillo Rico, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," AMSE Working Papers 2008, Aix-Marseille School of Economics, France.
  • Handle: RePEc:aim:wpaimx:2008
    as

    Download full text from publisher

    File URL: https://www.amse-aixmarseille.fr/sites/default/files/working_papers/wp_2020_-_nr_08.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:adr:anecst:y:2005:i:78:p:03 is not listed on IDEAS
    2. Jérôme Bourdieu & Lionel Kesztenbaum & Gilles Postel‐Vinay & Akiko Suwa‐Eisenmann, 2019. "Intergenerational Wealth Mobility in France, 19th and 20th Century," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(1), pages 21-47, March.
    3. Espen Bratberg & Øivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, September.
    4. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    5. Seymour Spilerman & Francois-Charles Wolff, 2012. "Parental wealth and resource transfers: How they matter in France for home ownership and living standards," Post-Print hal-03914532, HAL.
    6. Martin Nybom & Jan Stuhler, 2016. "Heterogeneous Income Profiles and Lifecycle Bias in Intergenerational Mobility Estimation," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 239-268.
    7. Sandra E Black & Paul J Devereux & Petter Lundborg & Kaveh Majlesi, 2020. "Poor Little Rich Kids? The Role of Nature versus Nurture in Wealth and Other Economic Outcomes and Behaviours," Review of Economic Studies, Oxford University Press, vol. 87(4), pages 1683-1725.
    8. Thomas Piketty, 2011. "On the Long-Run Evolution of Inheritance: France 1820--2050," The Quarterly Journal of Economics, Oxford University Press, vol. 126(3), pages 1071-1131.
    9. Leo Kaas & Georgi Kocharkov & Edgar Preugschat, 2019. "Wealth Inequality and Homeownership in Europe," Annals of Economics and Statistics, GENES, issue 136, pages 27-54.
    10. Luc Arrondel & Cyril Grange, 2006. "Transmission and inequality of wealth: An empirical study of wealth mobility from 1800 to 1938 in France," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(2), pages 209-232, August.
    11. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    12. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2016. "Appendix to "Accounting for Wealth Inequality Dynamics: Methods, Estimates and Simulations for France (1800-2014)"," Working Papers halshs-02794354, HAL.
    13. Arnaud Lefranc & Alain Trannoy, 2005. "Intergenerational earnings mobility in France: Is France more mobile than the U.S.?," Annals of Economics and Statistics, GENES, issue 78, pages 57-77.
    14. Facundo Alvaredo & Lucas Chancel & Thomas Piketty & Emmanuel Saez & Gabriel Zucman, 2017. "Global Inequality Dynamics: New Findings from WID.world," American Economic Review, American Economic Association, vol. 107(5), pages 404-409, May.
    15. Daniel Aaronson & Bhashkar Mazumder, 2008. "Intergenerational Economic Mobility in the United States, 1940 to 2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    16. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 0. "Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 620-663.
    17. Joseph P. Ferrie, 2005. "History Lessons: The End of American Exceptionalism? Mobility in the United States Since 1850," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 199-215, Summer.
    18. Corak, Miles & Lindquist, Matthew J. & Mazumder, Bhashkar, 2014. "A comparison of upward and downward intergenerational mobility in Canada, Sweden and the United States," Labour Economics, Elsevier, vol. 30(C), pages 185-200.
    19. Jo Blanden & Stephen Machin, 2017. "Home ownership and social mobility," CEP Discussion Papers dp1466, Centre for Economic Performance, LSE.
    20. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    21. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    22. Guiso, Luigi & Jappelli, Tullio, 2002. "Private Transfers, Borrowing Constraints and the Timing of Homeownership," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(2), pages 315-339, May.
    23. Glaeser, Edward L. & Sacerdote, Bruce, 2000. "The Social Consequences of Housing," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 1-23, March.
    24. Green, Richard K. & White, Michelle J., 1997. "Measuring the Benefits of Homeowning: Effects on Children," Journal of Urban Economics, Elsevier, vol. 41(3), pages 441-461, May.
    25. Kerwin Kofi Charles & Erik Hurst, 2003. "The Correlation of Wealth across Generations," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1155-1182, December.
    26. Facundo Alvaredo & Bertrand Garbinti & Thomas Piketty, 2017. "On the Share of Inheritance in Aggregate Wealth: Europe and the USA, 1900–2010," Economica, London School of Economics and Political Science, vol. 84(334), pages 239-260, April.
    27. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2021. "Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 620-663.
    28. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    29. Guglielmo Barone & Sauro Mocetti, 2021. "Intergenerational Mobility in the Very Long Run: Florence 1427–2011 [Intergenerational Economic Mobility in the United States, 1940 to 2000]," Review of Economic Studies, Oxford University Press, vol. 88(4), pages 1863-1891.
    30. 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.
    31. Luc Arrondel & Bertrand Garbinti & André Masson, 2014. "Inégalités de patrimoine entre générations : les donations aident‑elles les jeunes à s’installer ?," Économie et Statistique, Programme National Persée, vol. 472(1), pages 65-100.
    32. Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
    33. Mariacristina De Nardi, 2004. "Wealth Inequality and Intergenerational Links," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 743-768.
    34. Hertz Tom & Jayasundera Tamara & Piraino Patrizio & Selcuk Sibel & Smith Nicole & Verashchagina Alina, 2008. "The Inheritance of Educational Inequality: International Comparisons and Fifty-Year Trends," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-48, January.
    35. Arenas, Andreu & Malgouyres, Clément, 2018. "Countercyclical school attainment and intergenerational mobility," Labour Economics, Elsevier, vol. 53(C), pages 97-111.
    36. Sandra E. Black & Paul J. Devereux & Petter Lundborg & Kaveh Majlesi, 2015. "Poor Little Rich Kids? - The Determinants of the Intergenerational Transmission of Wealth," Working Papers 201516, School of Economics, University College Dublin.
    37. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 129(4), pages 1553-1623.
    38. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    39. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850," American Economic Review, American Economic Association, vol. 103(4), pages 1109-1137, June.
    40. Facundo Alvaredo & Bertrand Garbinti & Thomas Piketty, 2017. "On the Share of Inheritance in Aggregate Wealth: Europe and the USA, 1900–2010," Post-Print halshs-01509650, HAL.
    41. James J. Feigenbaum, 2018. "Multiple Measures of Historical Intergenerational Mobility: Iowa 1915 to 1940," Economic Journal, Royal Economic Society, vol. 128(612), pages 446-481, July.
    42. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2016. "Accounting for Wealth Inequality Dynamics: Methods, Estimates and Simulations for France (1800-2014)," Working Papers halshs-02794339, HAL.
    43. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850: Reply," American Economic Review, American Economic Association, vol. 103(5), pages 2041-2049, August.
    44. Chul-In Lee & Gary Solon, 2009. "Trends in Intergenerational Income Mobility," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 766-772, November.
    45. Joseph P. Ferrie, 2005. "The End of American Exceptionalism? Mobility in the U.S. Since 1850," NBER Working Papers 11324, National Bureau of Economic Research, Inc.
    46. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    47. Claudia Olivetti & M. Daniele Paserman, 2015. "In the Name of the Son (and the Daughter): Intergenerational Mobility in the United States, 1850-1940," American Economic Review, American Economic Association, vol. 105(8), pages 2695-2724, August.
    48. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
    49. Garbinti Bertrand & Savignac Frédérique, 2018. "The role of real estate in euro area wealth inequality: lessons from the Household Finance and Consumption Survey," Rue de la Banque, Banque de France, issue 55, january.
    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. Bertrand Garbinti & Frédérique Savignac, 2021. "Intergenerational Homeownership in France over the 20th Century," Working Papers hal-03307589, HAL.

    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. Bertrand Garbinti & Frédérique Savignac, 2020. "Accounting for Intergenerational Wealth Mobility in France over the 20th Century: Method and Estimations," Working papers 776, Banque de France.
    2. Bertrand Garbinti & Frédérique Savignac, 2020. "Intergenerational Home Ownership in France over the Twentieth Century," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 411-435, National Bureau of Economic Research, Inc.
    3. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Zachary Ward, 2023. "Intergenerational Mobility in American History: Accounting for Race and Measurement Error," American Economic Review, American Economic Association, vol. 113(12), pages 3213-3248, December.
    5. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    6. Pekkarinen, Tuomas & Salvanes, Kjell G. & Sarvimäki, Matti, 2016. "The Evolution of Social Mobility: Norway over the 20th Century," IZA Discussion Papers 9752, Institute of Labor Economics (IZA).
    7. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    8. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    9. Adrian Adermon & Mikael Lindahl & Mårten Palme, 2021. "Dynastic Human Capital, Inequality, and Intergenerational Mobility," American Economic Review, American Economic Association, vol. 111(5), pages 1523-1548, May.
    10. Yang, Xiaoliang & Zhou, Peng, 2022. "Wealth inequality and social mobility: A simulation-based modelling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 307-329.
    11. Jonathan Davis & Bhashkar Mazumder, 2017. "The Decline in Intergenerational Mobility After 1980," Working Paper Series WP-2017-5, Federal Reserve Bank of Chicago, revised 14 Jan 2022.
    12. Guido Neidhöfer, 2019. "Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 499-520, December.
    13. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    14. Lefranc, Arnaud, 2018. "Intergenerational Earnings Persistence and Economic Inequality in the Long-Run: Evidence from French Cohorts, 1931-1975," IZA Discussion Papers 11406, Institute of Labor Economics (IZA).
    15. Shiue, Carol, 2019. "Social Mobility in the Long Run: A Temporal Analysis of China from 1300 to 1900," CEPR Discussion Papers 13589, C.E.P.R. Discussion Papers.
    16. Michelle M. Miller & Frank McIntyre, 2020. "Does Money Matter for Intergenerational Income Transmission?," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 941-970, January.
    17. Lijie Song, 2022. "Examining the Relationship Between Intergenerational Upward Mobility and Inequality: Evidence from Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 1-27, August.
    18. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    19. Guo, Ningning, 2022. "Hollowing out of opportunity: Automation technology and intergenerational mobility in the United States," Labour Economics, Elsevier, vol. 75(C).
    20. Arnaud Lefranc, 2018. "Intergenerational Earnings Persistence and Economic Inequality in the Long Run: Evidence from French Cohorts, 1931–75," Economica, London School of Economics and Political Science, vol. 85(340), pages 808-845, October.

    More about this item

    Keywords

    intergenerational mobility; homeownership; housing; wealth transmission;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    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:aim:wpaimx:2008. 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: Gregory Cornu (email available below). General contact details of provider: https://edirc.repec.org/data/amseafr.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.