 The impact of income inequality on household indebtedness in euro area countriesStefan Jestl
European Journal of Economics and Economic Policies: Intervention, 2023, vol. 20, issue 2, 151-182 Abstract: This paper explores the impact of income inequality on household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest that there is weak evidence that income inequality has affected households’ indebtedness in continental European countries. The countries that show an impact are characterised by positive effects that operate across the income distribution and tend to be robust for consumption-related and housing-related debts. The effects, however, vary much less across the distribution for consumption-related debts as compared to housing-related debts. Households at the top of the income distribution seem to react more than lower-income households when it comes to housing-related debts. Keywords: income inequality; relative income; household indebtedness; euro area (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:20:y:2023:i:2:p1 Access Statistics for this article European Journal of Economics and Economic Policies: Intervention is currently edited by Torsten Niechoj More articles in European Journal of Economics and Economic Policies: Intervention from Edward Elgar Publishing |
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