IDEAS home Printed from https://ideas.repec.org/p/bfr/banfra/711.html
   My bibliography  Save this paper

Rising inequalities in access to home ownership among young households in France, 1973-2013

Author

Listed:
  • Carole Bonnet
  • Bertrand Garbinti
  • Sébastien Grobon

Abstract

Amongst young households (ages 25 to 44), inequalities in first-time home-ownership and in the amount of acquired real estate assets have increased between the most modest and the most affluent groups over the past forty years. According to Insee’s Housing surveys, 32% of young low-income households were homeowners in 1973, as compared to only 16% in 2013. Beyond the role of macroeconomic and institutional factors (real estate prices, interest rates, term of loans granted, etc.), a decomposition of changes in ownership rates over the period using the “Oaxaca-Blinder” method highlights the role of changes in family structures (increasing proportion of single-parent families, decline in the share of couples with children in the most modest households) and the sharp decline in small rural home ownership. Family support – gift assistance, inheritance and other forms of aid – also played an important part in the 2000s: four out of ten recent homeowners benefited from it, two out of ten even receiving direct financial assistance for their purchase. This support increased significantly among wealthier households during the 2000s, contributing to a widening gap with the share of homeowners in the least well off populations.

Suggested Citation

  • Carole Bonnet & Bertrand Garbinti & Sébastien Grobon, 2019. "Rising inequalities in access to home ownership among young households in France, 1973-2013," Working papers 711, Banque de France.
  • Handle: RePEc:bfr:banfra:711
    as

    Download full text from publisher

    File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/wp711_0.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Seymour Spilerman & François-Charles Wolff, 2012. "Parental wealth and resource transfers : How they matter in France for home ownership and living standards," Working Papers hal-00678988, HAL.
    2. Leo Kaas & Georgi Kocharkov & Edgar Preugschat, 2019. "Wealth Inequality and Homeownership in Europe," Annals of Economics and Statistics, GENES, issue 136, pages 27-54.
    3. Carole Bonnet & Bertrand Garbinti & Sébastien Grobon, 2018. "Rising inequalities in access to home ownership among young households in France, 1973-2013," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Études Économiques (INSEE), issue 500-501-5, pages 117-138.
    4. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2019. "Accounting for Wealth Inequality Dynamics: Methods, Estimates and Simulations for France," Working Papers 1935, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    5. Odran Bonnet & Pierre-Henri Bono & Guillaume Chapelle & Etienne Wasmer, 2014. "Le capital logement contribue-t-il aux inégalités? Retour sur le capital au XXIe siècle de Thomas Piketty," Sciences Po publications 25, Sciences Po.
    6. Thomas Piketty & Gabriel Zucman, 2014. "Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010," The Quarterly Journal of Economics, Oxford University Press, vol. 129(3), pages 1255-1310.
    7. Clément Carbonnier, 2015. "L’impact des prix de l’immobilier sur les inégalités et leur mesure," Revue économique, Presses de Sciences-Po, vol. 66(6), pages 1029-1044.
    8. Jean Bosvieux, 2005. "Accession à la propriété : des acquéreurs plus nombreux mais prudents," Économie et Statistique, Programme National Persée, vol. 381(1), pages 41-61.
    9. Donald R. Haurin & Toby L. Parcel & R. Jean Haurin, 2002. "Does Homeownership Affect Child Outcomes?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(4), pages 635-666.
    10. repec:adr:anecst:y:2004:i:74 is not listed on IDEAS
    11. Christophe Kolodziejczyk & Søren Leth-Petersen, 2013. "Do First-Time House Buyers Receive Financial Transfers from Their Parents?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(4), pages 1020-1045, October.
    12. 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.
    13. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    14. repec:adr:anecst:y:2004:i:74:p:02 is not listed on IDEAS
    15. Laurent Gobillon & David Le Blanc, 2005. "Quelques effets économiques du prêt à taux zéro," Économie et Statistique, Programme National Persée, vol. 381(1), pages 63-89.
    16. Laurent Gobillon & David Le Blanc, 2004. "Limpact des contraintes demprunt sur la mobilité résidentielle et les choix entrelocation et propriété," Annals of Economics and Statistics, GENES, issue 74, pages 15-45.
    17. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    18. Heather M. Luea, 2008. "The Impact Of Financial Help And Gifts On Housing Demand And Cost Burdens," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 420-432, July.
    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. Orsetta Causa & Nicolas Woloszko & David Leite, 2020. "Housing, Wealth Accumulation and Wealth Distribution: Evidence and Stylized Facts," LWS Working papers 30, LIS Cross-National Data Center in Luxembourg.
    2. Carole Bonnet & Bertrand Garbinti & Sébastien Grobon, 2018. "Rising inequalities in access to home ownership among young households in France, 1973-2013," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Études Économiques (INSEE), issue 500-501-5, pages 117-138.
    3. Bertrand GARBINTI & Frédérique SAVIGNAC, 2020. "Accounting for Intergenerational Wealth Mobility in France over the 20th Century: Method and Estimations," Working Papers 2020-16, Center for Research in Economics and Statistics.
    4. Jin Xie & Yinying Cai & Hang Tang & Yuanqin Liao, 2020. "Housing Wealth Status and Informal Accumulation of Rural Villages at the Rural-Urban Fringe in Shanghai, China," Sustainability, MDPI, Open Access Journal, vol. 12(17), pages 1-1, August.

    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 & Jonathan Goupille-Lebret & Thomas Piketty, 2019. "Accounting for Wealth Inequality Dynamics: Methods, Estimates and Simulations for France," Working Papers 1935, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Mayock, Tom & Malacrida, Rachel Spritzer, 2018. "Socioeconomic and racial disparities in the financial returns to homeownership," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 80-96.
    3. Clément Carbonnier, 2019. "The Distributional Impact of Local Taxation on Households in France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Études Économiques (INSEE), issue 507-508, pages 31-52.
    4. 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.
    5. Garbinti, Bertrand & Goupille-Lebret, Jonathan & Piketty, Thomas, 2018. "Income inequality in France, 1900–2014: Evidence from Distributional National Accounts (DINA)," Journal of Public Economics, Elsevier, vol. 162(C), pages 63-77.
    6. Òscar Jordà & Katharina Knoll & Dmitry Kuvshinov & Moritz Schularick & Alan M Taylor, 2019. "The Rate of Return on Everything, 1870–2015," The Quarterly Journal of Economics, Oxford University Press, vol. 134(3), pages 1225-1298.
    7. Bertrand GARBINTI & Jonathan GOUPILLE-LEBRET, 2018. "The evolution of wealth inequality in France from 1800 to 2014," Rue de la Banque, Banque de France, issue 66, July.
    8. 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.
    9. Barbara Castillo Rico, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," AMSE Working Papers 2008, Aix-Marseille School of Economics, France.
    10. Lieberknecht, Philipp & Vermeulen, Philip, 2018. "Inequality and relative saving rates at the top," Working Paper Series 2204, European Central Bank.
    11. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.
    12. Johar, Meliyanni & Soewondo, Prastuti & Pujisubekti, Retno & Satrio, Harsa Kunthara & Adji, Ardi, 2018. "Inequality in access to health care, health insurance and the role of supply factors," Social Science & Medicine, Elsevier, vol. 213(C), pages 134-145.
    13. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    14. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    15. Michael E. Martell & Peyton Nash, 2020. "For Love and Money? Earnings and Marriage Among Same-Sex Couples," Journal of Labor Research, Springer, vol. 41(3), pages 260-294, September.
    16. Oglobin, C., 2005. "The Gender Earnings Differential in Russia After a Decade of Economic Transition," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
    17. Ewa Cukrowska-Torzewska & Anna Lovasz, 2016. "Are children driving the gender wage gap?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(2), pages 259-297, April.
    18. Peng Nie & Lanlin Ding & Alfonso Sousa-Poza, 2020. "What Chinese Workers Value: An Analysis of Job Satisfaction, Job Expectations, and Labour Turnover in China," Prague Economic Papers, Prague University of Economics and Business, vol. 2020(1), pages 85-104.
    19. Howard Bodenhorn & Christopher Ruebeck, 2007. "Colourism and African–american wealth: evidence from the nineteenth-century south," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 599-620, July.
    20. Axel Heitmueller, 2004. "Job Mobility In Britain: Are The Scots Different? Evidence From The Bhps," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 329-358, August.

    More about this item

    Keywords

    homeownership; real estate wealth; family transfers; gift assistance; Oaxaca decomposition; inequalities;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • 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:bfr:banfra:711. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael brassart). General contact details of provider: http://edirc.repec.org/data/bdfgvfr.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.