Homeownership, Political Participation, and Social Capital in Post-Communist Countries and Western Europe

Kyklos 73: 96-119.

30 Pages Posted: 24 Jul 2019 Last revised: 18 Jan 2020

See all articles by Peter Huber

Peter Huber

Austrian Institute of Economic Research (WIFO); Mendel University in Brno

Josef Montag

Charles University

Multiple version iconThere are 2 versions of this paper

Date Written: July 23, 2019

Abstract

We study whether the positive effects of homeownership on political participation and social capital, found in developed market economies, extend to post-communist countries. We use the privatization of publicly-owned housing in post-communist countries as an exogenous source of variation of homeownership status to identify its impact on political participation and social capital formation. We find that homeownership is strongly related to higher participation in local-level and national elections. In post-communist countries, homeownership is also related to higher social trust. However, the positive association between homeownership and volunteering found in developed market economies does not extend to post-communist countries. Together, our results corroborate that homeownership is associated with positive social benefits. However, these effects are highly heterogeneous and context-dependent.

Keywords: Homeownership, social capital, political participation, post-communist countries

JEL Classification: D62, D72, P14, P26

Suggested Citation

Huber, Peter and Montag, Josef, Homeownership, Political Participation, and Social Capital in Post-Communist Countries and Western Europe (July 23, 2019). Kyklos 73: 96-119., Available at SSRN: https://ssrn.com/abstract=3424384

Peter Huber

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Mendel University in Brno ( email )

Zemedelska 1
Brno, South Moravia 61200
Czech Republic

Josef Montag (Contact Author)

Charles University ( email )

nam. Curieovych 7
Prague 1, 11640
Czech Republic

HOME PAGE: http://josefmontag.github.io

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