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Wealth Accumulation and Home Ownership of US young adults: 2005-2009

Santos, Cristina (2012). Wealth Accumulation and Home Ownership of US young adults: 2005-2009. FINNOV.

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Abstract

This paper describes how home ownership decisions of US American young adults may have changed with the financial crisis of 2008. It uses the NLSY97, a panel data set which follows individuals from their childhood until their early adulthood. It asks individuals who have turned 25 years of age what their assets, earnings and home situation are. By looking at how these answers differ over time, and between home owners and renters, we assess how the 2008 crisis has impacted on the differences between home owners and renters. Results suggest that the earnings distribution of renters remained more or less constant throughout the period, in nominal prices, while the divide between earnings of buyers and renters increased. At the same time, rental costs have increased, which suggests that the inequality between these two groups may have increased.
Renters also seem to have become more risk takers and try to compensate by having larger than usual risky assets in their portfolios.

Item Type: Other
Copyright Holders: 2012 The Author
Project Funding Details:
Funded Project NameProject IDFunding Body
Not SetNot SetTheme 8 of the Seventh Framework Programme European Commission (Socio-Economic Sciences and the Humanities, SSH-2007-1.2.3)
Keywords: buying or renting; inequality; financial regulation; US
Academic Unit/Department: Social Sciences > Economics
Interdisciplinary Research Centre: Innovation, Knowledge & Development research centre (IKD)
Item ID: 33157
Depositing User: Cristina Santos
Date Deposited: 08 Mar 2012 10:32
Last Modified: 26 Oct 2012 06:03
URI: http://oro.open.ac.uk/id/eprint/33157
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