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The role of imputed rents in intergenerational income mobility in three countries

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  • Alexeev, Sergey

Abstract

This is the first paper that studies the effects of including non-monetary income from housing (imputed rent) in the measure of income on intergenerational income mobility. Using national panel data sets for Australia, the United States and Germany, it is shown that only Australian society becomes 22% less mobile as measured by an intergenerational rank correlation. This decrease is also confirmed using the intergenerational transition matrices. As a result, cross-regional comparisons of intergenerational income mobility may be misleading, especially using tax data as imputed rent is rarely taxed.

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  • Alexeev, Sergey, 2020. "The role of imputed rents in intergenerational income mobility in three countries," Journal of Housing Economics, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:jhouse:v:49:y:2020:i:c:s1051137720300462
    DOI: 10.1016/j.jhe.2020.101710
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    Cited by:

    1. Tomas Kennedy & Peter Siminski, 2022. "Are We Richer than Our Parents Were? Absolute Income Mobility in Australia," The Economic Record, The Economic Society of Australia, vol. 98(320), pages 22-41, March.
    2. Denisa Naidin & Sofie R. Waltl & Michael Ziegelmeyer, 2022. "Objectified Housing Sales and Rent Prices in Representative Household Surveys: the Impact on Macroeconomic Statistics," LISER Working Paper Series 2022-03, Luxembourg Institute of Socio-Economic Research (LISER).
    3. Liang, Jian & Alexeev, Sergey, 2023. "Harm reduction or amplification? The adverse impact of a supervised injection room on housing prices," Regional Science and Urban Economics, Elsevier, vol. 98(C).

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    More about this item

    Keywords

    Intergenerational mobility; Income mobility; Rental income;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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