IDEAS home Printed from https://ideas.repec.org/p/lis/lwswps/37.html
   My bibliography  Save this paper

Is There a Trade-off between Housing and Pension System Generosity? Empirical Evidence from the Luxembourg Wealth Study

Author

Listed:
  • Edyta Marcinkiewicz
  • Filip Chybalski

Abstract

This study contributes to the discussion about the housing-pensions nexus. However, it aims to explore housing in the context of welfare provision from a different perspective. Unlike the vast majority of the previous studies, we do not focus on homeownership per se or housing deprivation as a dimension of poverty, but on the significance of housing wealth. Additionally, the presented analysis is based on the more comprehensive concept of pension generosity assessment which includes empirical replacement rates. The study employs micro-data from the Luxembourg Wealth Study (LWS) dataset. Using statistical analysis and multinomial logistic regression modelling we examine housing wealth patterns among elderly households with a special focus on the possible linkage between housing and pension system’s generosity. The results of cross-country comparisons imply that there are large country differences in terms of housing wealth accumulation. Analyses of the relationship between (average) pension system generosity and the (average) share of housing assets in total assets at the country level using aggregated values do not provide any evidence for the pensions-housing trade-off. However, when the level of aggregation is reduced, a different picture emerges. Especially when the households having very small or no housing assets relative to total assets are excluded, it becomes clearer that individuals receiving higher pension tend to differentiate their asset portfolio.

Suggested Citation

  • Edyta Marcinkiewicz & Filip Chybalski, 2022. "Is There a Trade-off between Housing and Pension System Generosity? Empirical Evidence from the Luxembourg Wealth Study," LWS Working papers 37, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:lwswps:37
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/lwswps/37.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bravo, Jorge Miguel & Ayuso, Mercedes & Holzmann, Robert, 2019. "Making Use of Home Equity: The Potential of Housing Wealth to Enhance Retirement Security," IZA Discussion Papers 12656, Institute of Labor Economics (IZA).
    2. Neda Delfani & Johan De Deken & Caroline Dewilde, 2014. "Home-Ownership and Pensions: Negative Correlation, but No Trade-off," Housing Studies, Taylor & Francis Journals, vol. 29(5), pages 657-676, July.
    Full references (including those not matched with items on IDEAS)

    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. Holzmann, Robert & Ayuso, Mercedes & Alaminos, Estefanía & Bravo, Jorge Miguel, 2019. "Life Cycle Saving and Dissaving Revisited across Three-Tiered Income Groups: Starting Hypotheses, Refinement through Literature Review, and Ideas for Empirical Testing," IZA Discussion Papers 12655, Institute of Labor Economics (IZA).
    2. Edyta Marcinkiewicz & Filip Chybalski, 2022. "Income-Poor, Asset-Rich? The Role of Homeownership in Shaping the Welfare Position of the Elderly," LWS Working papers 38, LIS Cross-National Data Center in Luxembourg.
    3. Rachel Ong & Gavin A Wood & Melek Cigdem, 2022. "Housing wealth, mortgages and Australians’ labour force participation in later life," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 810-833, March.
    4. Zuzana Žilinčíková & Christine Schnor, 2021. "Who moves out and who keeps the home? Short-term and medium-term mobility consequences of grey divorce in Belgium," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(9), pages 291-328.
    5. Eugeniya Malinskaya & Konstantin A. Kholodilin, 2022. "Stimulating Housing Policy and Housing Tenure Choice: Evidence from the G7 Countries," Discussion Papers of DIW Berlin 1997, DIW Berlin, German Institute for Economic Research.

    More about this item

    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:lis:lwswps:37. 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: Piotr Paradowski (email available below). General contact details of provider: https://edirc.repec.org/data/lisprlu.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.