Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/234076
Authors: 
Paz Pardo, Gonzalo
Year of Publication: 
2021
Series/Report no.: 
ECB Working Paper No. 2522
Abstract: 
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.
Subjects: 
Housing demand
earnings risk
wealth accumulation
intergenerational inequality
JEL: 
D31
E21
E24
G11
J31
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4522-6
Document Type: 
Working Paper

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