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Parental wealth and resource transfers : How they matter in France for home ownership and living standards

Author

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  • Seymour Spilerman

    (Department of Sociology at Columbia - Department of Sociology at Columbia)

  • François-Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IUML - FR 3473 Institut universitaire Mer et Littoral - UBS - Université de Bretagne Sud - UM - Le Mans Université - UA - Université d'Angers - CNRS - Centre National de la Recherche Scientifique - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UN - Université de Nantes - ECN - École Centrale de Nantes - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes, INED - Institut national d'études démographiques)

Abstract

The role played by parental wealth in facilitating the life chances and living standards of offspring is a topic of growing interest in stratification research. The addition of household wealth to the parental resource portfolio opens new issues with respect to mechanisms in the transmission of advantage across generations, since wealth transfers can take place at different points along the life course, in varying amounts, and for different purposes. This paper examines the impact of parental wealth and transfers of wealth on several aspects of the homeownership decision--the timing of the purchase, the cost of the home, and the downpayment proportion, as well as living standards subsequent to the purchase. We utilize a unique data set from France which contains information on parental wealth and wealth transfers from both sets of parents of a couple, as well as details on the timing of transfers in relation to a home purchase. The results make clear the complex pathways by which parental wealth influences the tenancy arrangements and living standards of offspring.

Suggested Citation

  • 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.
  • Handle: RePEc:hal:wpaper:hal-00678988
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00678988
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    Cited by:

    1. B. Garbinti, 2014. "Do Gifts and Bequests Facilitate Homeownership and Firm Creation?," Documents de Travail de l'Insee - INSEE Working Papers g2014-02, Institut National de la Statistique et des Etudes Economiques.
    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 & Jonathan Goupille-Lebret, 2018. "The Impact of Inheritance and Transfer Taxation on Economic Behaviours and Inequality: A Literature Review for France," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(02), pages 13-18, August.
    4. Bertrand Garbinti & Frédérique Savignac, 2020. "Intergenerational Homeownership in France over the 20th Century," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, National Bureau of Economic Research, Inc.
    5. 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.
    6. Barbara Castillo Rico, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," AMSE Working Papers 2008, Aix-Marseille School of Economics, France.
    7. Emil Israel & Nir Cohen & Daniel Czamanski, 2019. "Return on capital? Determinants of counter-migration among early career Israeli STEM researchers," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-20, August.
    8. repec:ces:ifodic:v:16:y:2018:i:2:p:50000000002755 is not listed on IDEAS
    9. Fabian T. Pfeffer & Martin Hällsten, 2012. "Mobility Regimes and Parental Wealth: The United States, Germany, and Sweden in Comparison," SOEPpapers on Multidisciplinary Panel Data Research 500, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Yukutake, Norifumi & Iwata, Shinichiro & Idee, Takako, 2015. "Strategic interaction between inter vivos gifts and housing acquisition," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 62-77.
    11. Begley, Jaclene, 2017. "Legacies of homeownership: Housing wealth and bequests," Journal of Housing Economics, Elsevier, vol. 35(C), pages 37-50.
    12. d’Albis, Hippolyte & Bonnet, Carole & Navaux, Julien & Pelletan, Jacques & Wolff, François-Charles, 2015. "Le déficit de cycle de vie en France: une évaluation pour la période 1979-2011," CEPREMAP Working Papers (Docweb) 1513, CEPREMAP.
    13. Hällsten, Martin & Pfeffer, Fabian T., 2017. "Grand advantage: family wealth and grandchildren's educational achievement in Sweden," Working Paper Series 2017:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. Hippolyte d’Albis & Carole Bonnet & Julien Navaux & Jacques Pelletan & François-Charles Wolff, 2017. "Lifecycle deficit in France: an assessment for the period 1979-2011," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Études Économiques (INSEE), issue 491-492, pages 47-70.
    15. Hippolyte d'Albis & Carole Bonnet & Julien Navaux & Jacques Pelletan & François-­charles Wolff, 2017. "Le déficit de cycle de vie en France : une évaluation pour la période 1979-2001," Post-Print halshs-01599680, HAL.
    16. Korom, Philipp, 2017. "Ungleiche Mittelschichten: Über Unterschiede im Immobilienvermögen und im Erbe innerhalb der Mitte Deutschlands," MPIfG Discussion Paper 17/14, Max Planck Institute for the Study of Societies.
    17. Giulia Ferrari & Carole Bonnet & Anne Solaz, 2019. "‘Will the one who keeps the children keep the house?’ Residential mobility after divorce by parenthood status and custody arrangements in France," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(14), pages 359-394.
    18. Albertini,Marco, 2016. "Ageing and family solidarity in Europe : patterns and driving factors of intergenerational support," Policy Research Working Paper Series 7678, The World Bank.
    19. Lee, Hyojung & Myers, Dowell & Painter, Gary & Thunell, Johanna & Zissimopoulos, Julie, 2020. "The role of parental financial assistance in the transition to homeownership by young adults," Journal of Housing Economics, Elsevier, vol. 47(C).

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