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Parental homeownership and education: the implications for offspring wealth inequality in GB

Author

Listed:
  • Paul Gregg

    (University of Bath)

  • Ricky Kanabar

    (University of Bath)

Abstract
The rapid widening of wealth inequalities has led to sharp differences in living standards in Great Britain. Understanding whether and, separately, the rate at which individuals accumulate particular types of wealth by family background is important for improving wealth and social mobility. We show offspring wealth inequality is driven by housing wealth and holding such wealth is becoming increasingly associated with early life circumstances relating to parental housing tenure and education, even after controlling for adult offspring's own characteristics. Importantly, we find adult offspring whose parents hold a degree and are homeowners are no less likely to report homeownership and housing wealth compared to older cohorts from the same background. Our findings imply the intergenerational rank correlation in housing wealth is set to double in a little over five decades.

Suggested Citation

  • Paul Gregg & Ricky Kanabar, 2022. "Parental homeownership and education: the implications for offspring wealth inequality in GB," CEPEO Working Paper Series 22-01, UCL Centre for Education Policy and Equalising Opportunities, revised Jul 2023.
    • Handle: RePEc:ucl:cepeow:22-01
    as

    Download full text from publisher

    File URL: https://repec-cepeo.ucl.ac.uk/cepeow/cepeowp22-01r2.pdf
    File Function: Second revision, 2023
    Download Restriction: no
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Buscha, Franz & Gorman, Emma & Sturgis, Patrick & Zhang, Min, 2023. "Ethnic differences in intergenerational housing mobility in England and Wales," GLO Discussion Paper Series 1222, Global Labor Organization (GLO).
    2. Ricky Kanabar, 2024. "Assortative mating and wealth inequality in Great Britain: evidence from the baby boomer and Gen X cohorts," CEPEO Working Paper Series 24-07, UCL Centre for Education Policy and Equalising Opportunities, revised Nov 2024.

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    More about this item

    Keywords

    Wealth; Housing; Inequality; intergenerational mobility; Great Britain.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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