Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences

Previous research has shown that the home ownership status of parents matters for the likelihood of a child becoming an owner, and other research has studied how financial intergenerational transfers affect the transition to ownership. We extend these existing studies by estimating the effect of fin...

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Main Authors: Ong ViforJ, Rachel, Clark, W.A.V., Phelps, Christopher
Format: Journal Article
Language:English
Published: WILEY 2022
Subjects:
Online Access:http://purl.org/au-research/grants/arc/FT200100422
http://hdl.handle.net/20.500.11937/89783
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author Ong ViforJ, Rachel
Clark, W.A.V.
Phelps, Christopher
author_facet Ong ViforJ, Rachel
Clark, W.A.V.
Phelps, Christopher
author_sort Ong ViforJ, Rachel
building Curtin Institutional Repository
collection Online Access
description Previous research has shown that the home ownership status of parents matters for the likelihood of a child becoming an owner, and other research has studied how financial intergenerational transfers affect the transition to ownership. We extend these existing studies by estimating the effect of financial transfers on the probability of becoming an owner as well as the role of in-kind transfers. We also analyse how the impacts of different intergenerational transmission channels vary across neighbourhoods of advantage and disadvantage and discuss the implications for inequality in access to ownership. Drawing on a large panel data set from the Household, Income and Labour Dynamics in Australia Survey, we offer three new findings. First, we show that financial transfers made concurrently with home purchases play a more important role than lagged transfers and that in-kind transfers are also an important part of the process of gaining ownership. Second, we note that in-kind transfers are more effective for raising home ownership prospects in areas with high socioeconomic status, while financial transfers appear to be more effective in middle-class neighbourhoods. Third, children from disadvantaged backgrounds are least likely to be assisted into home ownership by intergenerational transfers.
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spelling curtin-20.500.11937-897832023-01-31T03:52:43Z Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences Ong ViforJ, Rachel Clark, W.A.V. Phelps, Christopher Social Sciences Demography Geography coresidence home ownership inheritance intergenerational transfers parental transfers rent-free FINANCIAL TRANSFERS PARENTAL WEALTH HOMEOWNERSHIP INHERITANCE HOUSEHOLD FRANCE Previous research has shown that the home ownership status of parents matters for the likelihood of a child becoming an owner, and other research has studied how financial intergenerational transfers affect the transition to ownership. We extend these existing studies by estimating the effect of financial transfers on the probability of becoming an owner as well as the role of in-kind transfers. We also analyse how the impacts of different intergenerational transmission channels vary across neighbourhoods of advantage and disadvantage and discuss the implications for inequality in access to ownership. Drawing on a large panel data set from the Household, Income and Labour Dynamics in Australia Survey, we offer three new findings. First, we show that financial transfers made concurrently with home purchases play a more important role than lagged transfers and that in-kind transfers are also an important part of the process of gaining ownership. Second, we note that in-kind transfers are more effective for raising home ownership prospects in areas with high socioeconomic status, while financial transfers appear to be more effective in middle-class neighbourhoods. Third, children from disadvantaged backgrounds are least likely to be assisted into home ownership by intergenerational transfers. 2022 Journal Article http://hdl.handle.net/20.500.11937/89783 10.1002/psp.2624 English http://purl.org/au-research/grants/arc/FT200100422 WILEY restricted
spellingShingle Social Sciences
Demography
Geography
coresidence
home ownership
inheritance
intergenerational transfers
parental transfers
rent-free
FINANCIAL TRANSFERS
PARENTAL WEALTH
HOMEOWNERSHIP
INHERITANCE
HOUSEHOLD
FRANCE
Ong ViforJ, Rachel
Clark, W.A.V.
Phelps, Christopher
Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title_full Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title_fullStr Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title_full_unstemmed Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title_short Intergenerational transfers and home ownership outcomes: Transmission channels and geographic differences
title_sort intergenerational transfers and home ownership outcomes: transmission channels and geographic differences
topic Social Sciences
Demography
Geography
coresidence
home ownership
inheritance
intergenerational transfers
parental transfers
rent-free
FINANCIAL TRANSFERS
PARENTAL WEALTH
HOMEOWNERSHIP
INHERITANCE
HOUSEHOLD
FRANCE
url http://purl.org/au-research/grants/arc/FT200100422
http://hdl.handle.net/20.500.11937/89783