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

Author

Listed:
  • Renata Bottazzi

    (University of Bologna and Institute for Fiscal Studies)

  • Thomas Crossley

    (Koc University, University of Cambridge and Institute for Fiscal Studies)

  • Matthew Wakefield

    (Royal Holloway, University of London and Institute for Fiscal Studies)

Abstract
We investigate whether initial differences in speed of entry into homeownership lead to longlasting differences in ownership between generations. Our data span nearly forty years and multiple cycles of England’s very volatile house prices. We document that ownership rates at thirty have differed substantially, with a significant negative association with prices. To assess the persistence of these differences we use synthetic cohort methods. Measurement error problems – attenuation and other biases - complicate the analysis. Two methods of dealing with this both indicate that cohorts with low ownership rates at thirty close about 80% of the ownership gap by forty.

Suggested Citation

  • Renata Bottazzi & Thomas Crossley & Matthew Wakefield, 2012. "Late starters or excluded generations? A cohort analysis of catch up in homeownership in England," Koç University-TUSIAD Economic Research Forum Working Papers 1215, Koc University-TUSIAD Economic Research Forum.
    • Handle: RePEc:koc:wpaper:1215
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    File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1215.pdf
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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," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(1), pages 45-81.

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    More about this item

    Keywords

    homeownership; 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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