Income variability, uncertainty and housing tenure choice

Robst, John; Deitz, Richard; McGoldrick, KimMarie

doi:10.1016/s0166-0462(98)00031-3

Cited by 83 publications

(65 citation statements)

References 14 publications

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“…Following Robst et al (1999) and Diaz-Serrano (2004) income uncertainty will be measured using the household head's net annual labor income. There are several reasons to sustain that this source of income is the main determinant of homeownership.…”

Section: Measuring Income Uncertaintymentioning

confidence: 99%

“…As in Robst et al (1999) and Diaz-Serrano (2004), income uncertainty would be estimated using the time-varying component of the estimated residuals in equation (6) as follows 9 :…”

Section: Measuring Income Uncertaintymentioning

confidence: 99%

“…However, despite the absence of a consensus in the theoretical literature, the scarce empirical evidence finds an unambiguous negative effect of income uncertainty on the probability of homeownership (Haurin and Gill 1987, Haurin 1991, and Robst et al 1999, in the US, and Diaz-Serrano 2004, in Germany and Spain).…”

Section: Introductionmentioning

confidence: 98%

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On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints

Díaz-Serrano

2005

Journal of Housing Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Forschungsinstitut zur Zukunft der ArbeitInstitute for the Study Barriers to homeownership have traditionally been an important research and policy issue. In particular, the role of income volatility and credit constraints have been one of the main focuses in this concern. In this paper we test for the first time whether the underlying nature behind the negative effect of income uncertainty on the owner-occupancy propensities is driven by risk aversion, as it is assumed in most of the theoretical models, or on the contrary it is driven by credit constraints. The former question emerges from the plausible assumption that households facing higher income volatility are also expected to face borrowing constraints. To disentangle this puzzle, we use an unusually rich data coming from the Italian Survey of Household Income and Wealth carried out by the Bank of Italy. Our results confirm that in Italy both labor income uncertainty and credit constraints exert a significant negative effect on the probability of homeownership. Our main findings indicate that the negative relationship between labor income uncertainty and the owner-occupancy propensities are just driven by households' risk aversion, while credit constraints play no role.JEL Classification: D1, R0, J0

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Section: Measuring Income Uncertaintymentioning

confidence: 99%

“…As in Robst et al (1999) and Diaz-Serrano (2004), income uncertainty would be estimated using the time-varying component of the estimated residuals in equation (6) as follows 9 :…”

Section: Measuring Income Uncertaintymentioning

confidence: 99%

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On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints

Díaz-Serrano

2005

Journal of Housing Economics

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“…However, there is strong correlation between housing quality and households' income. Income plays a significant role in a household's tenure choice decision (Robst, Deitz, & McGoldrick, 1999).…”

Section: Household's Incomementioning

confidence: 99%

Effects of Poverty on Urban Residents’ Living and Housing Conditions in Nigeria

Akinyode

Martins

2017

JAH

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The importance of housing has made it received much attention worldwide among scholars and policy makers as a potential tool for man's productivity. However, little is known about the poverty implications on the living and housing condition among Nigerian residents. This study aims at examining the effects of poverty among urban residents on their living and housing conditions in Nigeria. Questionnaires administration was made among 400 residents to assess residential attributes. Qualitatively supported with the aid of personal interview, observation and photographs. Correlation analysis was drawn between the residents' socio-economic status and housing condition. Results through descriptive analysis established that majority of the housing exhibit deterioration condition. This resulted from the socio-economic situation and high poverty level of the residents. The result also showed robust and positive relationship between residents socioeconomic and urban housing condition. This positive relationship demonstrates support for the negative impacts on the welfare of the residents. Urban housing attributes are of importance for residents' safety, comfort and convenience to enhance productivity. In view of this, the authors are of opinion that, urgent attention is highly necessary if the residents are to live in an environment that is safe, convenience and comfortable in order to enhance their productivity.

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“…To begin with, Haurin and Gill (1987), Haurin (1991) and Robst et al (1999) demonstrate, using US data, that income uncertainty adversely affects homeownership attainment. Diaz-Serrano (2005) reports a similar finding in a European context, where institutional settings and property market characteristics are quite different from the US.…”

mentioning

confidence: 99%

Do Long Distance Moves Discourage Homeownership? Evidence from England

Hilber

2013

SSRN Journal

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Income variability, uncertainty and housing tenure choice

Cited by 83 publications

References 14 publications

On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints

On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints

Effects of Poverty on Urban Residents’ Living and Housing Conditions in Nigeria

Do Long Distance Moves Discourage Homeownership? Evidence from England

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