IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp15268.html
   My bibliography  Save this paper

Do Individuals Adapt to All Types of Housing Transitions?

Author

Listed:
  • Clark, Andrew E.

    (Paris School of Economics)

  • Diaz-Serrano, Luis

    (Universitat Rovira i Virgili)

Abstract

This paper provides one of the first tests of adaptation to the complete set of residential transitions. We use long-run SOEP panel data and consider the impact of all housing transitions, whether or not they involve a change in housing tenure or geographical movement, on both life satisfaction and housing satisfaction. Controlling for individual characteristics, some residential transitions affect life satisfaction only little, while all transitions have a significant effect on housing satisfaction. This latter is particularly large for renters who become homeowners and move geographically, and for renters who move without changing tenure status. Regarding housing satisfaction, we only uncover evidence of some adaptation for renter-renter moves. Losing homeowner status is the only transition that produces lower housing satisfaction, and here the effect seems to become even more negative over time.

Suggested Citation

  • Clark, Andrew E. & Diaz-Serrano, Luis, 2022. "Do Individuals Adapt to All Types of Housing Transitions?," IZA Discussion Papers 15268, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15268
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp15268.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:hal:pseose:halshs-00846456 is not listed on IDEAS
    2. Qari, Salmai, 2014. "Marriage, adaptation and happiness: Are there long-lasting gains to marriage?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 29-39.
    3. repec:hal:pseose:halshs-01383894 is not listed on IDEAS
    4. Alois Stutzer & Bruno S. Frey, 2008. "Stress that Doesn't Pay: The Commuting Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 339-366, June.
    5. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    6. Glaeser, Edward L. & Sacerdote, Bruce, 2000. "The Social Consequences of Housing," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 1-23, March.
    7. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    8. Paul Frijters & David W. Johnston & Michael A. Shields, 2011. "Life Satisfaction Dynamics with Quarterly Life Event Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 190-211, March.
    9. Dan Andrews & Aida Caldera Sánchez, 2011. "The Evolution of Homeownership Rates in Selected OECD Countries: Demographic and Public Policy Influences," OECD Journal: Economic Studies, OECD Publishing, vol. 2011(1), pages 1-37.
    10. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
    11. Andrew E. Clark & Yannis Georgellis, 2013. "Back to Baseline in Britain: Adaptation in the British Household Panel Survey," Economica, London School of Economics and Political Science, vol. 80(319), pages 496-512, July.
    12. Shang-Jin Wei & Xiaobo Zhang & Yin Liu, 2012. "Status Competition and Housing Prices," NBER Working Papers 18000, National Bureau of Economic Research, Inc.
    13. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    14. Andrew T. Carswell & Russell N. James & Yoko Mimura, 2009. "Examining the Connection Between Housing Counseling Practices and Long-Term Housing and Neighborhood Satisfaction," Community Development, Taylor & Francis Journals, vol. 40(1), pages 37-53, May.
    15. Stotz, Olaf, 2019. "The perception of homeownership utility: Short-term and long-term effects," Journal of Housing Economics, Elsevier, vol. 44(C), pages 99-111.
    16. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    17. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    18. Beata Nowok & Maarten van Ham & Allan M Findlay & Vernon Gayle, 2013. "Does Migration Make You Happy? A Longitudinal Study of Internal Migration and Subjective Well-Being," Environment and Planning A, , vol. 45(4), pages 986-1002, April.
    19. Feng Hu, 2013. "Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 951-971, February.
    20. Chris Foye & David Clapham & Tommaso Gabrieli, 2018. "Home-ownership as a social norm and positional good: Subjective wellbeing evidence from panel data," Urban Studies, Urban Studies Journal Limited, vol. 55(6), pages 1290-1312, May.
    21. Diaz-Serrano, Luis, 2009. "Disentangling the housing satisfaction puzzle: Does homeownership really matter?," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 745-755, October.
    22. Díaz Serrano, Luis & Ferrer Carbonell, Ada & Hartog, Joop, 2009. "Disentangling the Housing Satisfaction Puzzle: Does Homeownership Really Matter?," Working Papers 2072/42898, Universitat Rovira i Virgili, Department of Economics.
    23. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    24. Luis Diaz-Serrano & Alexandrina P. Stoyanova, 2010. "Mobility and housing satisfaction: an empirical analysis for 12 EU countries," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 661-683, September.
    25. Timo Zumbro, 2014. "The Relationship Between Homeownership and Life Satisfaction in Germany," Housing Studies, Taylor & Francis Journals, vol. 29(3), pages 319-338, April.
    26. Tobias Wolbring, 2017. "Home Sweet Home! Does Moving Have (Lasting) Effects on Housing Satisfaction?," Journal of Happiness Studies, Springer, vol. 18(5), pages 1359-1375, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lepinteur, Anthony & Clark, Andrew E. & D'Ambrosio, Conchita, 2024. "Unsettled: Job Insecurity Reduces Home-Ownership," IZA Discussion Papers 17038, Institute of Labor Economics (IZA).
    2. Tongtong Qiu & Siliang Wang, 2024. "Housing Tenure, Intrahousehold Homeownership Structure and Health," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(4), pages 2035-2062, August.
    3. Gum-Ryeong Park & Bo Kyong Seo & Jinho Kim, 2024. "Moderating Effects of Housing Tenure Change on the Longitudinal Relationship Between Housing Relocation and Life Satisfaction," Journal of Happiness Studies, Springer, vol. 25(7), pages 1-16, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clark, Andrew E. & Díaz Serrano, Lluís, 2020. "The Long-run Effects of Housing on Well-Being," Working Papers 2072/376033, Universitat Rovira i Virgili, Department of Economics.
    2. Sebastian Will & Timon Renz, 2021. "In Debt but Still Happy? Examining the Relationship between Homeownership and Life Satisfaction," ERES eres2021_89, European Real Estate Society (ERES).
    3. Reto Odermatt & Alois Stutzer, 2022. "Does the Dream of Home Ownership Rest Upon Biased Beliefs? A Test Based on Predicted and Realized Life Satisfaction," Journal of Happiness Studies, Springer, vol. 23(8), pages 3731-3763, December.
    4. Stotz, Olaf, 2019. "The perception of homeownership utility: Short-term and long-term effects," Journal of Housing Economics, Elsevier, vol. 44(C), pages 99-111.
    5. Adrian Chadi & Clemens Hetschko, 2021. "How Job Changes Affect People's Lives — Evidence from Subjective Well‐Being Data," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 279-306, June.
    6. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    7. Honghao Ren & Henk Folmer, 2017. "Determinants of residential satisfaction in urban China: A multi-group structural equation analysis," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1407-1425, May.
    8. Mingzhi Hu & Wenping Ye, 2020. "Home Ownership and Subjective Wellbeing: A Perspective from Ownership Heterogeneity," Journal of Happiness Studies, Springer, vol. 21(3), pages 1059-1079, March.
    9. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    10. Milena Nikolova & Boris Nikolaev & Olga Popova, 2021. "The perceived well-being and health costs of exiting self-employment," Small Business Economics, Springer, vol. 57(4), pages 1819-1836, December.
    11. Fabrice Etilé & Paul Frijters & David W. Johson & Michael A. Shields, 2017. "Modelling Heterogeneity in the Resilience to Major Socioeconomic Life Events," Working Papers halshs-01485989, HAL.
    12. Tobias Wolbring, 2017. "Home Sweet Home! Does Moving Have (Lasting) Effects on Housing Satisfaction?," Journal of Happiness Studies, Springer, vol. 18(5), pages 1359-1375, October.
    13. Ehsan Latif, 2021. "Homeownership and happiness: evidence from Canad," Economics Bulletin, AccessEcon, vol. 41(1), pages 1-17.
    14. repec:hal:pseose:halshs-01112725 is not listed on IDEAS
    15. Etilé, Fabrice & Frijters, Paul & Johnston, David W. & Shields, Michael A., 2020. "Psychological Resilience to Major Socioeconomic Life Events," IZA Discussion Papers 13063, Institute of Labor Economics (IZA).
    16. Díaz Serrano, Lluís & Teruel, Mercedes, 2020. "On the Link between Self-Employment and Job Satisfaction: What Do Really Change after Becoming a Self-Employee?," Working Papers 2072/376034, Universitat Rovira i Virgili, Department of Economics.
    17. Kaiser, Caspar, 2020. "People do not adapt. New analyses of the dynamic effects of own and reference income on life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 494-513.
    18. O’Leary, Nigel & Li, Ian W. & Gupta, Prashant & Blackaby, David, 2020. "Wellbeing trajectories around life events in Australia," Economic Modelling, Elsevier, vol. 93(C), pages 499-509.
    19. Manyi Luo & Shihu Zhong & Jie Chen, 2024. "The sweet burden: Does homeownership improve the economic status of households?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    20. Kaiser, Caspar, 2018. "People do not adapt to income changes: A re-evaluation of the dynamic effects of (reference) income on life satisfaction with GSOEP and UKHLS data," INET Oxford Working Papers 2018-07, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    21. Marcel Erlinghagen & Christoph Kern & Petra Stein, 2019. "Internal Migration, Social Stratification and Dynamic Effects on Subjective Well Being," SOEPpapers on Multidisciplinary Panel Data Research 1046, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    housing; adaptation; well-being; SOEP;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp15268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.