Homeownership and portfolio choice over the generations

Gonzalo Paz-Pardo

Earnings are riskier and more unequal for households born in the 1960s and 1980s than for those born in the 1940s. Despite the improvements in financial conditions, younger generations are less likely to be living in their own homes than older generations at the same age. By using a life-cycle model with housing and portfolio choice that includes flexible earnings risk and aggregate asset price risk, I show that changes in earnings dynamics account for a large part of the reduction in homeownership across generations. Lower-income households find it harder to buy housing, and as a result accumulate less wealth.

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Year of publication:	[2021]
Authors:	Paz Pardo, Gonzalo
Publisher:	Frankfurt am Main, Germany : European Central Bank
Subject:	Housing demand \| earnings risk \| wealth accumulation \| intergenerational inequality \| Wohneigentum \| Homeownership \| Generationengerechtigkeit \| Intergenerational equity \| Portfolio-Management \| Portfolio selection \| Vermögen \| Wealth \| Risiko \| Risk \| Vermögensverteilung \| Wealth distribution \| Privater Haushalt \| Household

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Extent:	1 Online-Ressource (circa 85 Seiten) Illustrationen
Series:	Working paper series / European Central Bank. - Frankfurt, M. : European Central Bank, ISSN 1725-2806, ZDB-ID 2123559-4. - Vol. no 2522 (February 2021)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
ISBN:	978-92-899-4522-6
Other identifiers:	10.2866/280547 [DOI] hdl:10419/234076 [Handle]
Classification:	D31 - Personal Income, Wealth and Their Distributions ; E21 - Consumption; Saving ; E24 - Employment; Unemployment; Wages ; G11 - Portfolio Choice ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012426310