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Trends in intergenerational homeownership mobility in France between 1960-2015

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  • Bárbara Castillo

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, Banque de France - Banque de France - Banque de France)

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.

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  • Bárbara Castillo, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," Working Papers halshs-02511116, HAL.
    • Handle: RePEc:hal:wpaper:halshs-02511116
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02511116
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    Cited by:

    1. Bertrand Garbinti & Frédérique Savignac, 2021. "Intergenerational Homeownership in France over the 20th Century," Working Papers hal-03307589, HAL.

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    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

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