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Sait Bayrakdar, Philipp Lersch, Sergi Vidal & Rory Coulter

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1 Sait Bayrakdar, Philipp Lersch, Sergi Vidal & Rory Coulter
A longitudinal analysis of leaving home and entering the housing system in Britain, Germany and Australia Sait Bayrakdar, Philipp Lersch, Sergi Vidal & Rory Coulter ISA RC28 Spring Meeting, University of Cologne, 31/03/2017

2 Relevance Housing outcomes as an important step of the transition to independent living for young adults An important indicator of later life-outcomes A significant factor influencing other life-course decisions such as partnership and fertility An aspect of intergenerational transmission of disadvantage.

3 Relevance Recent changes to impact outcomes of millennials
Changes to housing market Global Financial Crisis Changes to life course events

4 Background Housing outcomes and home-leaving of young adults shaped by
individual characteristics and socio-economic position (Iacovou, 2010, Stone et al 2011; 2014) Life events (Thomas and Mulder 2016, Stone et al, 2014) high levels of intergenerational transmission of housing outcomes (Blaauboer, 2010) macro-contextual characteristics

5 Background Contextual factors are expected to affect housing destinations (Mulder et al., 2015, Priemus and Whitehead, 2014, Dewilde, 2017). Differences in contextual settings are to create different patterns for housing destinations across countries. Dual vs Unitary markets (financialization) Tenure composition (provision of social housing) Welfare and labour market policies

6 Background UK Germany Australia Housing market
high marketization; dual market, residual social housing sector, ideology of home ownership High marketization; unitary market; renting as a viable option High marketization; dual market; ideology of home ownership; high homeownership rate Welfare systems central role for free market Relatively significant interference of state Education and labour market Weak or no arrangements for labour market transition; low level of labour market regulations Transition to labour market policies; strong labour market regulations Strong vocational track and transition to labour market policies

7 Research question How does parental background influence the timing and housing outcomes of transitions out of the parental home in Britain, Germany and Australia? Aim: To explore the impact of parental characteristics with a comparative approach to understand the role of macro level factors such as housing market characteristics and welfare systems on housing transitions. To discuss housing wealth as an important aspect of social stratification processes by illustrating housing outcome with empirical data.

8 Research question How does parental background influence the timing and housing outcomes of transitions out of the parental home in Britain, Germany and Australia? Focus: 18-34 year-old individuals living in parental home in Britain, Germany, and Australia Looking at their personal and parental characteristics, their life events Interpreting housing tenure outcomes with respect to the contextual differences across three countries

9 Data BHPS/UKHLS (UK), SOEP (Germany), HILDA (Australia)
From 2001 to 2014 Select sample members who were at the parental home at UK: 9,086 (4,947 males, 4,139 females) DE: 15,220 (8,544 males, 6,676 females) AU: 10,213 (5,966males, 5,247 females) Dependent variable: housing destination Parental home vs transition to: home ownership, private rental, social rental

10 Data Independent variables:
Personal characteristics: sex, age, country of birth, health, own child at home, new-born child, education, income, Life events: partnership transition, main economic activity transition Parental background: parental education, parental income, parental tenure, room stress Other controls: previously left home, region, bhps/ukhls EHA, multinomial logistic regression

11 Transition by destination
UK: 4,947 males; 4,139 females DE: 8,544 males; 6,676 females AU: 5,966 males; 5,247 females

12 UK Home ownership Social tenancy Private tenancy Male Female
Home ownership Social tenancy Private tenancy Male Female Education (ref: higher sec.) low sec. or lower -0.168 -0.812 0.725* -0.102 0.294 -0.216 vocational 0.557* 0.495+ -1.241 0.162 0.092 -0.136 degree 0.493* 0.383+ -0.305 0.114 0.708*** 0.401* Income (ref: low) middle 0.1 -0.416 0.687 -0.647* -0.049 -0.116 high 1.147** 0.942** 0.238 -1.053* 0.185 -0.039 Parental education (ref: no degree) 0.142 -0.322 0.811 0.278 0.199 0.463** Parental income (ref: low) 0.097 -0.263 0.077 0.007 0.326+ 0.287 0.442 0.314 -0.289 -0.642 0.623** 0.191 Parental tenure (ref: homeownership) renting -0.855** -0.06 0.834** 0.828*** 0.500** 0.218

13 Germany Home ownership Private tenancy Male Female
Home ownership Private tenancy Male Female Education (ref: higher sec.) low sec. or lower -0.538 -0.704 -0.191 -0.024 vocational 0.837 -0.157 0.467 -0.635 degree 0.016 0.295 0.560* 0.616** Income (ref: low) middle -0.562 0.202 0.413+ 0.525** high 0.476 0.540 0.790*** 0.671** Parental education (ref: no degree) 0.508 0.027 0.522*** 0.338** Parental income (ref: low) 0.310 -0.008 0.052 -0.212 -0.283 0.012 0.345* 0.002 Parental tenure (ref: homeownership) renting 0.170 -1.055* 0.374** 0.236*

14 Australia Home ownership Social tenancy Private tenancy Male Female
Home ownership Social tenancy Private tenancy Male Female Education (ref: higher sec.) low sec. or lower 0.088 0.122 -0.5 0.025 0.080 vocational 0.107 0.507 -1 -0.799 0.207 -0.098 degree 0.326 1.292*** *** 0.939 0.527* 0.408* Income (ref: low) middle 0.172 0.550 -0.310 -0.538 0.466*** 0.135 high 1.351*** 1.570*** *** 1.502 -0.062 Parental education (ref: no degree) -0.142 0.006 1.049 -0.452 0.572*** 0.123 Parental income (ref: low) -0.181 -0.085 1.101* 0.262 0.157 0.281 -0.367 0.519 0.174 0.142 0.124 Parental tenure (ref: homeownership) renting -0.100 -0.073 1.164* 0.823 0.500*** 0.375**

15 Trends for socio-economic status
Ownership UK Germany Australia Education + for both + for women Income Social Rental - for men n/a - for women Private Rental + for men

16 Trends for parental background
Ownership UK Germany Australia Parental education Parental income Parental tenure (owner) + for men + for women Social Rental n/a + for female - for both - for male Private Rental + for both - for men

17 Conclusions Effects of parental background:
Intergenerational continuation of tenure Parental education and income has impact particularly on early transition to private rental No significant effect on home ownership (probably partly because of low transition rates) Country differences on gendered effects: There are no strong differences in patterns across countries Parental tenure has an effect for men in UK and for women in Germany on homeownership Parental education has an effect for women in UK and for men in Australia

18 Remarks Three destination models are not relevant to Germany, (and to some extent) to Australia. Analysis for attrition in UK did not show any strong pattern. The analysis for those observed first between age show similar results (checks for selection).

19 Acknowledgements Thank you! sb2152@cam.ac.uk
This research is supported by an Economic and Social Research Council Future Research Leaders award [ES/L /1]. Additional financial support has been provided by the Isaac Newton Trust.


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