The Role of Parents on the Home Ownership Experience of Their Children: Evidence from the Health and Retirement Study

40 Pages Posted: 2 Oct 2017

See all articles by Shaun A. Bond

Shaun A. Bond

University of Cincinnati

Michael D. Eriksen

University of Cincinnati - Department of Finance - Real Estate

Date Written: March 5, 2017

Abstract

We construct a matched panel of the adult children of Health and Retirement Study respondents to study the role of lagged parental demographic and wealth attributes on subsequent home ownership decisions. A bivariate probit estimator is used to model the joint decision of adult children to live independently and either become or stay a homeowner between 2000 and 2012. A significant role for parent demographic and wealth attributes, often omitted from earlier research, is found. The explainable portion of the gap in becoming a home owner between white and non-white adult children increases from 26.6% to 65.1% when parental attributes are included.

Keywords: Home Ownership, Foreclosure, Household Formation, Inter-Generational Transfers

JEL Classification: D31, D64, I38, J15, R21, R28, R31

Suggested Citation

Bond, Shaun Alexander and Eriksen, Michael D., The Role of Parents on the Home Ownership Experience of Their Children: Evidence from the Health and Retirement Study (March 5, 2017). University of Cincinnati Lindner College of Business Research Paper No. 2017-001. Available at SSRN: https://ssrn.com/abstract=3044708 or http://dx.doi.org/10.2139/ssrn.3044708

Shaun Alexander Bond

University of Cincinnati ( email )

College of Business Administration
Cincinnati, OH 45221-0195
United States

Michael D. Eriksen (Contact Author)

University of Cincinnati - Department of Finance - Real Estate ( email )

College of Business Administration
Cincinnati, OH 45221
United States

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