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Late starters or excluded generations? A cohort analysis of catch up in home ownership in England

Author

Listed:
  • Renata Bottazzi

    (Institute for Fiscal Studies and University of Bologna)

  • Thomas Crossley

    (Institute for Fiscal Studies and University of Essex and European University Institute)

  • Matthew Wakefield

    (Institute for Fiscal Studies and University of Bologna)

Abstract

England has very volatile house prices. Using survey data spanning multiple house-price cycles over nearly forty years, we document the association between house prices and homeownership at age thirty. We then use synthetic cohort methods to assess whether differences in early ownership rates persist in later life. We find that ownership rates at age thirty have varied substantially, with a significant negative association with prices. Measurement error problems - attenuation and other biases - complicate an analysis of the persistence of these differences in ownership. We use two methods to deal with this. Both indicate that cohorts with low ownership rates at age thirty close about 80% of the ownership gap by age forty.

Suggested Citation

  • Renata Bottazzi & Thomas Crossley & Matthew Wakefield, 2012. "Late starters or excluded generations? A cohort analysis of catch up in home ownership in England," IFS Working Papers W12/10, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:12/10
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    References listed on IDEAS

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    Cited by:

    1. James S. Cloyne & Paolo Surico, 2017. "Household Debt and the Dynamic Effects of Income Tax Changes," Review of Economic Studies, Oxford University Press, vol. 84(1), pages 45-81.

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    More about this item

    Keywords

    Home ownership; synthetic cohort data; measurement error.;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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