Why do home-owners do better?

Australians who own their own home display favourable outcomes on a range of socio-economic indicators when compared to renters, and substantial benefits of home-ownership also appear to accrue to their children. Whether such effects are causal or simply reflect pre-existing characteristics associa...

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Main Authors: Dockery, Michael, Bawa, Sherry
Format: Conference Paper
Published: 2019
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/77146
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author Dockery, Michael
Bawa, Sherry
author_facet Dockery, Michael
Bawa, Sherry
author_sort Dockery, Michael
building Curtin Institutional Repository
collection Online Access
description Australians who own their own home display favourable outcomes on a range of socio-economic indicators when compared to renters, and substantial benefits of home-ownership also appear to accrue to their children. Whether such effects are causal or simply reflect pre-existing characteristics associated with selection into home-ownership has important implications for decisions to be made by individuals and families, and for policy in light of recent declines in home-ownership rates for younger adults. The literature primarily attributes the better outcomes of those in home-ownership to greater residential stability, particularly in the case of children’s educational attainment, and a greater incentive to invest in the local community, but there is little empirical evidence on the sources of benefits from home-ownership in Australia. Using longitudinal data from the Household, Income and Labour Dynamics in Australia survey (HILDA) this paper employs a range of strategies to test competing hypotheses relating to causal mechanisms and selection effects associated with home-ownership. We focus on indicators of physical and mental health, life satisfaction and, for youth, educational attainment. The results suggest the better physical and mental health outcomes of home-owners reflect selection effects rather than any causal impact of home-ownership on health. However, there is evidence that home-ownership promotes higher life-satisfaction, and of residential stability and parental community engagement associated with parental home-ownership impacting beneficially on outcomes for youth.
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spelling curtin-20.500.11937-771462020-04-29T07:07:39Z Why do home-owners do better? Dockery, Michael Bawa, Sherry 1402 - Applied Economics Australians who own their own home display favourable outcomes on a range of socio-economic indicators when compared to renters, and substantial benefits of home-ownership also appear to accrue to their children. Whether such effects are causal or simply reflect pre-existing characteristics associated with selection into home-ownership has important implications for decisions to be made by individuals and families, and for policy in light of recent declines in home-ownership rates for younger adults. The literature primarily attributes the better outcomes of those in home-ownership to greater residential stability, particularly in the case of children’s educational attainment, and a greater incentive to invest in the local community, but there is little empirical evidence on the sources of benefits from home-ownership in Australia. Using longitudinal data from the Household, Income and Labour Dynamics in Australia survey (HILDA) this paper employs a range of strategies to test competing hypotheses relating to causal mechanisms and selection effects associated with home-ownership. We focus on indicators of physical and mental health, life satisfaction and, for youth, educational attainment. The results suggest the better physical and mental health outcomes of home-owners reflect selection effects rather than any causal impact of home-ownership on health. However, there is evidence that home-ownership promotes higher life-satisfaction, and of residential stability and parental community engagement associated with parental home-ownership impacting beneficially on outcomes for youth. 2019 Conference Paper http://hdl.handle.net/20.500.11937/77146 fulltext
spellingShingle 1402 - Applied Economics
Dockery, Michael
Bawa, Sherry
Why do home-owners do better?
title Why do home-owners do better?
title_full Why do home-owners do better?
title_fullStr Why do home-owners do better?
title_full_unstemmed Why do home-owners do better?
title_short Why do home-owners do better?
title_sort why do home-owners do better?
topic 1402 - Applied Economics
url http://hdl.handle.net/20.500.11937/77146