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Social Policy or Crowding-Out? Tenant Protection in Comparative Long-Run Perspective

Author

Listed:
  • Konstantin A. Kholodilin
  • Sebastian Kohl
  • Yulia Prozorova
  • Julien Licheron

Abstract

In the shadow of homeownership and public housing, social policy through the regulation of private rental markets is a neglected and underestimated field of social policy. This paper, therefore, presents unique new data on the development of private tenancy legislation through the binary coding of rent control, the protection of tenants from eviction, and rental housing rationing laws across more than 25 countries and 100 years. This long-run perspective reveals the dynamic effects of rent control on the rise of homeownership as the dominant tenure during the 20th century. We find that both rent regulation and rationing legislation effectively increased homeownership, but only up to a certain threshold. We suggest that the short-term lure of an inexpensive social policy for tenants has led to the long-term marginalization of rental markets in many countries.

Suggested Citation

  • Konstantin A. Kholodilin & Sebastian Kohl & Yulia Prozorova & Julien Licheron, 2019. "Social Policy or Crowding-Out? Tenant Protection in Comparative Long-Run Perspective," Discussion Papers of DIW Berlin 1778, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1778
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    Cited by:

    1. Konstantin A. Kholodilin & Sebastian Kohl & Tobias Niemeyer, 2019. "Steuerliche Instrumente der Wohneigentumsförderung," DIW Roundup: Politik im Fokus 132, DIW Berlin, German Institute for Economic Research.
    2. Konstantin A. Kholodilin & Sebastian Kohl, 2021. "Rent Price Control – Yet Another Great Equalizer of Economic Inequalities?: Evidence from a Century of Historical Data," Discussion Papers of DIW Berlin 1927, DIW Berlin, German Institute for Economic Research.
    3. Francisco Amaral & Martin Dohmen & Sebastian Kohl & Moritz Schularick, 2021. "Superstar Returns," SciencePo Working papers Main hal-03881493, HAL.
    4. Friedrich Breyer & Nicole Hoffmeister-Kraut & Matthias Wrede & Harald Simons & Lars Vandrei & Theresia Theurl & Ralph Henger & Konstantin Kholodilin & Sebastian Kohl, 2018. "Scheitern der sozialen Wohnungspolitik: Wie bezahlbaren Wohnraum schaffen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(21), pages 03-30, November.

    More about this item

    Keywords

    Homeownership; rent control; tenure security; housing rationing; dynamic panel data model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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