Housing wealth, mortgages and Australians’ labour force participation in later life
Bibliographic Data
| ID | 10864712 |
|---|---|
| Authors | Rachel Ong (0000-0001-8557-8802, Curtin University, corresponding author), Graeme A Wood (0000-0002-1465-3016, RMIT University), Gavin A Wood (RMIT University), Melek Cigdem (0000-0002-4200-4056, RMIT University) |
| Year | 2022 |
| Volume | 59 |
| Issue | 4 |
| Pages | 810-833 |
| Publication date | 2022-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Urban Studies (JOURNAL) |
| Journal identifiers | ISSN: 0042-0980 • E-ISSN: 1360-063X |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/00420980211026578 |
| OpenAlex | W3184939447 |
| Language | EN |
| Citations received | 2 |
| References cited | 43 |
In the life cycle model of consumption and saving, homeownership is an important vehicle for horizontal redistribution. Households accumulate wealth in owner-occupied housing during working lives before benefiting from imputed rent streams in retirement. But in some countries housing wealth’s welfare role has broadened as owners increasingly use flexible mortgages to smooth consumption during working lives. One consequence is higher outstanding mortgages later in life, a burden exacerbated by high real house prices that compel home buyers to demand mortgages that are a growing multiple of their incomes. We investigate whether these developments are prompting longer working lives, an idea that is especially relevant in countries offering relatively low government pensions. Australia is one such country. We use the 2001–2017 panels of the Household, Income and Labour Dynamics in Australia Survey to estimate hazard models of exits from the Australian labour force as workers approach pensionable age. We find that those with high outstanding mortgage debts are more likely to postpone retirement, as are those with relatively low amounts of private pension wealth. These results are stronger in urban housing markets, and especially among males
Business · Consumption (sociology · Debt · Demographic economics · Economics · Government (linguistics · Household debt · Labour economics · Market economy · National wealth · Pension · Redistribution (election · Welfare · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism
Applied Longitudinal Data Analysis
Two-stage residual inclusion estimation
A Farewell to Australia's Welfare State
Pathways to Retirement in Australia
Home ownership as a (crumbling) fourth pillar of social insurance in Australia
Home ownership and early retirement
Housing Opportunities and Welfare Provision
The Really Big Trade‐Off” between Home Ownership and Welfare
Home Ownership and Pensions
Home-Ownership and Pensions
Divorce, Separation, and Housing Changes
The Effect of Residential Location on Retirement Age
Motivations for Equity Borrowing
Housing older Australians
The Impact of Housing Assistance on the Employment Outcomes of Labour Market Programme Participants in Australia
The false promise of homeownership
Neoliberalism, economic restructuring and policy change
The institutional design of the Australian Welfare State
The importance of housing costs in cross‐national comparisons of welfare (state) outcomes
The Effect of Private Wealth on the Retirement Rate
House Prices, Wealth Effects and Labour Supply
Home Ownership and the Welfare State
Factors influencing the decision of whether to retire or extend one’s employment
Australia's "Other" Gender Wage Gap
Stock Market Wealth and Consumption
The effect of late-life debt use on retirement decisions
| Unique citing works | 2 |
|---|---|
| Citations per year | 0.67 |
| Citation span | 2023 - 2026 (4) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |