The housing channel of intergenerational wealth persistence

Ella Getz Wold (), Knut Are Aastveit, Eirik Eylands Brandsaas (), Ragnar Enger Juelsrud () and Gisle Natvik

No 06/2024, Working Papers from Centre for Household Finance and Macroeconomic Research (HOFIMAR), BI Norwegian Business School

Abstract: We use Norwegian micro data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. A mediation analysis reveals large housing gaps based on parental wealth. A shift-share IV-analysis using stock market returns supports a causal interpretation. Using the timing of intra-family deaths, we further show that housing outcomes when young are important determinants of later-in-life wealth. Nearly 15% of intergenerational wealth persistence occurs through the housing market, making housing equally important as the combined impact of parental wealth via a broad range of offspring characteristics, including income and education.

Keywords: Housing market; intergenerational wealth; wealth inequality (search for similar items in EconPapers)
Pages: 69 pages
Date: 2024
New Economics Papers: this item is included in nep-dge, nep-fdg and nep-ure
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https://hdl.handle.net/11250/3153193

Related works:
Working Paper: The housing channel of intergenerational wealth persistence (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:bbq:wpaper:0013

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