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Housing wealth accumulation: The role of public housing

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  • Goffette-Nagot, Florence
  • Sidibé, Modibo

Abstract

The public housing sector provides housing units at below-market rents, potentially allowing its tenants to save for a downpayment more quickly than they would have otherwise. In this paper, we analyze the effect of a spell in public housing on age at first-time homeownership using the French Housing Survey. We use a pseudo-panel approach that takes into account the specificities of the local housing market, to derive individual tenure transitions from multiple cross-sections data, for the period 1979–2006. Using an IV strategy to control for a potential selection into public housing, we jointly estimate public housing tenancy and duration before first-time homeownership, and take into account unobserved heterogeneity. Our results indicate that a spell in public housing increases the hazard to homeownership, supporting the idea that, in France in the study period, the public housing policy provided an important pathway to homeownership.

Suggested Citation

  • Goffette-Nagot, Florence & Sidibé, Modibo, 2016. "Housing wealth accumulation: The role of public housing," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 12-22.
    • Handle: RePEc:eee:regeco:v:57:y:2016:i:c:p:12-22
    DOI: 10.1016/j.regsciurbeco.2015.11.004
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    2. Jin Xie & Yinying Cai & Hang Tang & Yuanqin Liao, 2020. "Housing Wealth Status and Informal Accumulation of Rural Villages at the Rural-Urban Fringe in Shanghai, China," Sustainability, MDPI, vol. 12(17), pages 1-23, August.
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    4. Jaupart, Pascal, 2020. "The elusive quest for social diversity: Public housing, diversity, and politics in France," Economics Letters, Elsevier, vol. 197(C).
    5. Arthur Acolin, 2019. "Housing trajectories of immigrants and their children in France: Between integration and stratification," Urban Studies, Urban Studies Journal Limited, vol. 56(10), pages 2021-2039, August.

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    More about this item

    Keywords

    Homeownership; Public housing; Tenure choice; Duration model; Unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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