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The relationship between income and housing deprivation: A longitudinal analysis

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  • Fusco, Alessio
Abstract
This paper analyses the relationship between income and housing deprivation, a key dimension of well-being defined as the accumulation of deficiencies in terms of basic quality and amenity of a dwelling. Using longitudinal data from the Luxembourg Panel Socio-Economique ‘Liewen zu Lëtzebuerg’ (PSELL3), we find that long-term housing deprivation is negatively associated with long-term income but the size of this relationship is highly reduced when controlling for unobserved heterogeneity through fixed effects models. This finding suggests that housing deprivation is less affected by short variations in income than by changes in long-term income and that unobserved characteristics may affect the relationship between long-term deprivation and long-term income. It also highlights the importance of taking a long-term perspective when analysing individuals' well-being.

Suggested Citation

  • Fusco, Alessio, 2015. "The relationship between income and housing deprivation: A longitudinal analysis," Economic Modelling, Elsevier, vol. 49(C), pages 137-143.
    • Handle: RePEc:eee:ecmode:v:49:y:2015:i:c:p:137-143
    DOI: 10.1016/j.econmod.2015.04.002
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    3. Angelo Moretti & Natalie Shlomo & Joseph W. Sakshaug, 2020. "Multivariate Small Area Estimation of Multidimensional Latent Economic Well‐being Indicators," International Statistical Review, International Statistical Institute, vol. 88(1), pages 1-28, April.
    4. Elena Bárcena-Martín & Maite Blázquez & Santiago Budría & Ana I. Moro-Egido, 2017. "Child and Household Deprivation: A Relationship Beyond Household Socio-demographic Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1079-1098, July.
    5. Paola Ballón & John Cockburn & Sylvain Dessy & Setou Diarra, 2018. "Child Monetary Poverty and Multidimensional Deprivations: Why They Differ," Journal of African Economies, Centre for the Study of African Economies, vol. 27(4), pages 483-512.
    6. E. Bárcena-Martín & B. Lacomba & A. I. Moro-Egido & S. Pérez-Moreno, 2014. "Country Differences in Material Deprivation in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 802-820, December.
    7. Kirsten van Houdt, 2023. "Separation as an accelerator of housing inequalities: Parents’ and children’s post-separation housing careers in Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 49(4), pages 47-82.
    8. Maike Damme, 2020. "Overcrowded Housing and Relationship Break-up," European Journal of Population, Springer;European Association for Population Studies, vol. 36(1), pages 119-139, March.
    9. Bárcena-Martín, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2020. "The role of income pooling and decision-making responsibilities in material deprivation," Economic Modelling, Elsevier, vol. 87(C), pages 416-428.
    10. Queder, Fabian, 2020. "Competitive effects of cable networks on FTTx deployment in Europe," Telecommunications Policy, Elsevier, vol. 44(10).
    11. Bárcena-Martín, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2020. "Intra-household arrangements: How important are they in terms of male-female subjective well-being?," Journal of Economic Psychology, Elsevier, vol. 80(C).
    12. Best, Rohan, 2022. "Household wealth of tenants promotes their solar panel access," Economic Modelling, Elsevier, vol. 106(C).

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