This paper develops and estimates a dynamic model of discrete choice for labor supply, fertility and transition from tenant to homeowner, to investigate the secular decline in homeownership over the past several decades, wholly attributable to households postponing the purchase of their first home. House prices only partly explain the decline; higher base level wages led to lower fertility also contributing to the decline, because households with children are more likely to own a home than those without. Somewhat surprisingly we find higher levels of female education ameliorated this trend, highly educated women placing greater value on home ownership.
|Number of pages||47|
|Publication status||Published - 2019|
|Event||3rd Conference and Summer School on Structural Dynamic Models: Applications in Industrial Organization, Marketing, and Business Analytics - The University of Chicago Booth School of Business, Chicago, United States|
Duration: 10 Jul 2019 → 11 Jul 2019
Conference number: 3
|Conference||3rd Conference and Summer School on Structural Dynamic Models|
|Location||The University of Chicago Booth School of Business|
|Period||10/07/2019 → 11/07/2019|
- Housing Demand
- Labor supply
Khorunzhina, N., & Miller, R. A. (2019). American Dream Delayed: Shifting Determinants of Homeownership. Paper presented at 3rd Conference and Summer School on Structural Dynamic Models, Chicago, United States.