Housing, wealth accumulation and wealth distribution: Evidence and stylized facts

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2  ECO/WKP(2019)58 Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

Housing policies for sustainable and inclusive cities

“…Housing affects the well-being of all citizens and has profound social and economic impacts on people's lives in every country. It is often the largest financial asset for households, representing on average half of total assets across households in OECD countries (Causa et al, 2019). As a result, house price fluctuations have a strong effect on both the overall economic performance and the wealth distribution of a country .…”

“…Tenure policies have specific effects on the demand or supply in the owner-occupied and/or rental segments of the housing market. Increasing home ownership is often understood as a desirable policy goal, as it supposedly brings positive effects such as more commitment and community engagement by owners compared with renters, even though it also has certain social costs connected with a decrease in mobility (Causa et al, 2019). The type of schemes to support homeowners include: one-off grants towards the construction of new housing or purchase of an existing dwelling; subsidies to mortgage interest deductions (discussed in Section 3.2.2); mortgage relief and mortgage guarantees; and preferential tax treatment on home sales (discussed in Section 3.3.2).…”

“…The type of schemes to support homeowners include: one-off grants towards the construction of new housing or purchase of an existing dwelling; subsidies to mortgage interest deductions (discussed in Section 3.2.2); mortgage relief and mortgage guarantees; and preferential tax treatment on home sales (discussed in Section 3.3.2). These schemes sometimes target first-time buyers and/or households within a specific income bracket or with other characteristics, but often they do not and so they can be regressive (Causa et al, 2019;OECD, forthcoming 2020b).…”

Promoting Social Mobility in Austria

“…One likely reason for the low equity in Austria's education system -and hence for the low educational mobility documented in Section 1.2.1 -is that Austria "tracks" pupils with the start of secondary education at the young age of 10 years (compared to an OECD average of 14). Empirical studies from countries such as Finland, Germany, Sweden and Switzerland suggest that the early sorting of students into different tracks or schools based on their ability is associated with a stronger transmission of advantage or disadvantage across generations (see D'Addio (2007 [22]) and Causa and Johansson (2010 [23])). Early tracking reduces opportunities for day-to-day interaction of children from different social backgrounds and hence creates obstacles for children from disadvantaged backgrounds to catch up with their peers from better-off families.…”

“…While these large gender disparities partly reflect traditional views about gender roles in society 23 , and particular the role of mothers, they also result from policy factors. This includes an insufficient availability of childcare solutions (Section 1.3.1) and relatively weak incentives for a more equal sharing of family and work responsibilities through the tax and benefit system.…”