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Housing expenditures and income inequality

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Bibliographic Details
Authors and Corporations: Dustmann, Christian (Author), Fitzenberger, Bernd (Author), Zimmermann, Markus (Author)
Other Authors: Fitzenberger, Bernd 1963- [Author] • Zimmermann, Markus [Author]
Type of Resource: E-Book
Language: English
Berlin, Germany German Socio-Economic Panel (SOEP), DIW Berlin 2018
Series: Deutsches Institut für Wirtschaftsforschung: SOEP papers on multidisciplinary panel data research ; 1009 (2018)
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Summary: In this paper, we show that, in terms of real disposable income, changes in housing expenditures dramatically exacerbate the trend of income inequality that has risen sharply in Germany since the mid-1990s. More specifically, whereas the 50/10 ratio of net household income increasesby 22 percentage points (pp) between 1993 and 2013, it increases by 62 pp for income net of housing expenditures. At the same time, the income share of housing expenditures rises disproportionally for the bottom income quintile and falls for the top quintile. Factors contributing to these trends include a decline in the relative costs of homeownership versus renting, changes in household structure, and residential mobility toward larger cities. Younger cohorts spend more on housing and save less than older cohorts did at the same age, with possibly negative consequences for wealth accumulation, particularly for those at the bottom of the income distribution.
Physical Description: 1 Online-Ressource (circa 70 Seiten); Illustrationen