Intergenerational Homeownership in France over the 20th Century
We estimate the intergenerational correlation in homeownership status between two generations for cohorts covering the 20th century. First, we find higher intergenerational correlation in France compared to previous results obtained for the UK for similar cohorts. Second, the intergenerational correlation is increasing across cohorts, with a relatively stable probability of being a homeowner for children of homeowners over time, and a decreasing probability for children whose parents were not homeowners. Third, the effect of parents’ tenure status is persistent over the children’s life cycle. Fourth, when isolating two subpopulations based on the receipt of intergenerational transfers, we find significant intergenerational correlation in tenure status for children who did not receive any gift or inheritance, as well as for children who received intergenerational transfers, suggesting that other factors such as intergenerational income correlation or the transmission of preferences might also explain this intergenerational correlation.
This chapter has been prepared for the NBER book Measuring Distribution and Mobility of Income and Wealth, Raj Chetty, John N. Friedman, Janet C. Gornick, Barry Johnson & Arthur Kennickell , editors. A companion paper (Garbinti and Savignac, 2020) studies more broadly intergenerational wealth correlation in France. We thank Arthur Kennickell as well as the participants at the CRIW/NBER 2020 conference on Measuring and Understanding the Distribution and Intra/Inter-Generational Mobility of Income for fruitful discussions. We also thank Salomé Fofana, Thomas Lloyd and Sylvie Tarrieu for their excellent research assistance and Barbara Castillo Rico for her great help harmonizing the first waves of the French Wealth Survey at an early stage of this project. This work is supported by a public grant overseen by the French National Research Agency (ANR) as part of the “Investissements d’Avenir” program (LabEx Ecodec/ANR-11-LABX-0047). This paper reflects the opinions of the authors and does not necessarily express the views of their institution. In particular, this paper does not necessarily reflect the position of the Banque de France or the Eurosystem. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.