Arbeitspapier

Housing Expenditures and Income Inequality

In this paper, we show that, in terms of real disposable income, changes in housing expenditures dramatically exacerbate the trend of income inequality that has risen sharply in Germany since the mid-1990s. More specifically, whereas the 50/10 ratio of net household income increases by 22 percentage points (pp) between 1993 and 2013, it increases by 62 pp for income net of housing expenditures. At the same time, the income share of housing expenditures rises disproportionally for the bottom income quintile and falls for the top quintile. Factors contributing to these trends include a decline in the relative costs of homeownership versus renting, changes in household structure, and residential mobility toward larger cities. Younger cohorts spend more on housing and save less than older cohorts did at the same age, with possibly negative consequences for wealth accumulation, particularly for those at the bottom of the income distribution.

Sprache
Englisch

Erschienen in
Series: CReAM Discussion Paper Series ; No. 16/18

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Thema
income inequality
housing expenditures

Ereignis
Geistige Schöpfung
(wer)
Dustmann, Christian
Fitzenberger, Bernd
Zimmermann, Markus
Ereignis
Veröffentlichung
(wer)
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
(wo)
London
(wann)
2018

Letzte Aktualisierung
2025-03-10T11:44:41+0100

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dustmann, Christian
  • Fitzenberger, Bernd
  • Zimmermann, Markus
  • Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London

Entstanden

  • 2018

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