IDEAS home Printed from https://ideas.repec.org/p/hal/psewpa/halshs-03230851.html
   My bibliography  Save this paper

The Long-run Effects of Housingon Well-Being

Author

Listed:
  • Andrew E. Clark

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Luis Diaz-Serrano

    (Universitat Rovira i Virgili, Universidad Antonio de Nebrija)

Abstract

This paper provides one of the first testsof adaptation tothe complete set ofresidential transitions. We use long-run SOEP panel data and consider the impact of all housing transitions, whether or not they involvea change in housing tenureor geographical movement, on both life satisfaction and housing satisfaction. Controlling for individual characteristics and housing quality, some residential transitionsaffect life satisfactiononly little, while all transitions have a significant effect on housing satisfaction. This latter is particularly large for renters who become homeowners and move geographically,and for renters who move without changing tenure status. Regarding housing satisfaction, we find very little evidence of adaptation even after five years. Losing homeowner status is the only transition that produces lower housing satisfaction, and here the effect seems to become even more negative over time.

Suggested Citation

  • Andrew E. Clark & Luis Diaz-Serrano, 2021. "The Long-run Effects of Housingon Well-Being," PSE Working Papers halshs-03230851, HAL.
  • Handle: RePEc:hal:psewpa:halshs-03230851
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03230851
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-03230851/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:hal:pseose:halshs-00846456 is not listed on IDEAS
    2. Qari, Salmai, 2014. "Marriage, adaptation and happiness: Are there long-lasting gains to marriage?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 29-39.
    3. Alois Stutzer & Bruno S. Frey, 2008. "Stress that Doesn't Pay: The Commuting Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 339-366, June.
    4. Glaeser, Edward L. & Sacerdote, Bruce, 2000. "The Social Consequences of Housing," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 1-23, March.
    5. Andrew E. Clark, 2019. "Born to Be Mild? Cohort Effects Don’t (Fully) Explain Why Well-Being Is U-Shaped in Age," Springer Books, in: Mariano Rojas (ed.), The Economics of Happiness, chapter 0, pages 387-408, Springer.
    6. David G. Blanchflower, 2021. "Is happiness U-shaped everywhere? Age and subjective well-being in 145 countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 575-624, April.
    7. Mariano Rojas (ed.), 2019. "The Economics of Happiness," Springer Books, Springer, number 978-3-030-15835-4, October.
    8. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
    9. Reto Odermatt & Alois Stutzer, 2019. "(Mis-)Predicted Subjective Well-Being Following Life Events," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 245-283.
    10. Andrew E. Clark & Yannis Georgellis, 2013. "Back to Baseline in Britain: Adaptation in the British Household Panel Survey," Economica, London School of Economics and Political Science, vol. 80(319), pages 496-512, July.
    11. Shang-Jin Wei & Xiaobo Zhang & Yin Liu, 2012. "Status Competition and Housing Prices," NBER Working Papers 18000, National Bureau of Economic Research, Inc.
    12. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    13. Stotz, Olaf, 2019. "The perception of homeownership utility: Short-term and long-term effects," Journal of Housing Economics, Elsevier, vol. 44(C), pages 99-111.
    14. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    15. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    16. Beata Nowok & Maarten van Ham & Allan M Findlay & Vernon Gayle, 2013. "Does Migration Make You Happy? A Longitudinal Study of Internal Migration and Subjective Well-Being," Environment and Planning A, , vol. 45(4), pages 986-1002, April.
    17. Feng Hu, 2013. "Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 951-971, February.
    18. Chris Foye & David Clapham & Tommaso Gabrieli, 2018. "Home-ownership as a social norm and positional good: Subjective wellbeing evidence from panel data," Urban Studies, Urban Studies Journal Limited, vol. 55(6), pages 1290-1312, May.
    19. Diaz-Serrano, Luis, 2009. "Disentangling the housing satisfaction puzzle: Does homeownership really matter?," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 745-755, October.
    20. Díaz Serrano, Luis & Ferrer Carbonell, Ada & Hartog, Joop, 2009. "Disentangling the Housing Satisfaction Puzzle: Does Homeownership Really Matter?," Working Papers 2072/42898, Universitat Rovira i Virgili, Department of Economics.
    21. 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.
    22. Luis Diaz-Serrano & Alexandrina P. Stoyanova, 2010. "Mobility and housing satisfaction: an empirical analysis for 12 EU countries," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 661-683, September.
    23. Timo Zumbro, 2014. "The Relationship Between Homeownership and Life Satisfaction in Germany," Housing Studies, Taylor & Francis Journals, vol. 29(3), pages 319-338, April.
    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. Richard H. Rijnks & Stephen Sheppard, 2018. "Occupant Well-Being and House Values," Department of Economics Working Papers 2018-05, Department of Economics, Williams College.
    2. Gum-Ryeong Park & Jinho Kim, 2023. "Trajectories of Life Satisfaction Before and After Homeownership: The Role of Housing Affordability Stress," Journal of Happiness Studies, Springer, vol. 24(1), pages 397-408, January.

    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. Andrew E. Clark & Luis Diaz-Serrano, 2023. "Do individuals adapt to all types of housing transitions?," Review of Economics of the Household, Springer, vol. 21(2), pages 645-672, June.
    2. Sebastian Will & Timon Renz, 2021. "In Debt but Still Happy? Examining the Relationship between Homeownership and Life Satisfaction," ERES eres2021_89, European Real Estate Society (ERES).
    3. Reto Odermatt & Alois Stutzer, 2022. "Does the Dream of Home Ownership Rest Upon Biased Beliefs? A Test Based on Predicted and Realized Life Satisfaction," Journal of Happiness Studies, Springer, vol. 23(8), pages 3731-3763, December.
    4. Adrian Chadi & Clemens Hetschko, 2021. "How Job Changes Affect People's Lives — Evidence from Subjective Well‐Being Data," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 279-306, June.
    5. Stotz, Olaf, 2019. "The perception of homeownership utility: Short-term and long-term effects," Journal of Housing Economics, Elsevier, vol. 44(C), pages 99-111.
    6. Honghao Ren & Henk Folmer, 2017. "Determinants of residential satisfaction in urban China: A multi-group structural equation analysis," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1407-1425, May.
    7. Mingzhi Hu & Wenping Ye, 2020. "Home Ownership and Subjective Wellbeing: A Perspective from Ownership Heterogeneity," Journal of Happiness Studies, Springer, vol. 21(3), pages 1059-1079, March.
    8. Junji Kageyama & Kazuma Sato, 2021. "Explaining the U-shaped life satisfaction: dissatisfaction as a driver of behavior," Journal of Bioeconomics, Springer, vol. 23(2), pages 179-202, July.
    9. Odermatt, Reto & Powdthavee, Nattavudh & Stutzer, Alois, 2017. "Overoptimistic Entrepreneurs: Predicting Wellbeing Consequences of Self-Employment," IZA Discussion Papers 11098, Institute of Labor Economics (IZA).
    10. Tobias Wolbring, 2017. "Home Sweet Home! Does Moving Have (Lasting) Effects on Housing Satisfaction?," Journal of Happiness Studies, Springer, vol. 18(5), pages 1359-1375, October.
    11. Ehsan Latif, 2021. "Homeownership and happiness: evidence from Canad," Economics Bulletin, AccessEcon, vol. 41(1), pages 1-17.
    12. Díaz Serrano, Lluís & Teruel, Mercedes, 2020. "On the Link between Self-Employment and Job Satisfaction: What Do Really Change after Becoming a Self-Employee?," Working Papers 2072/376034, Universitat Rovira i Virgili, Department of Economics.
    13. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    14. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    15. Biermann, Philipp & Bitzer, Jürgen & Gören, Erkan, 2022. "The relationship between age and subjective well-being: Estimating within and between effects simultaneously," The Journal of the Economics of Ageing, Elsevier, vol. 21(C).
    16. Manyi Luo & Shihu Zhong & Jie Chen, 2024. "The sweet burden: Does homeownership improve the economic status of households?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    17. Wojtek Tomaszewski & Francisco Perales, 2014. "Who Settles for Less? Subjective Dispositions, Objective Circumstances, and Housing Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 181-203, August.
    18. Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2019. "Looking Back in Anger? Retirement and Unemployment Scarring," Demography, Springer;Population Association of America (PAA), vol. 56(3), pages 1105-1129, June.
    19. Feng Hu, 2013. "Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 951-971, February.

    More about this item

    Keywords

    Housing; Adaptation; Well-being; SOEP;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • 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:hal:psewpa:halshs-03230851. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.