Journal of Family and Economic Issues

, Volume 36, Issue 4, pp 531–556 | Cite as

Economic Hardship, Housing Cost Burden and Tenure Status: Evidence from EU-SILC

Original Paper

Abstract

The primary goal of this study is to contribute on the literature on poverty by looking at household economic hardship in relation to the housing cost burden. Being one of the most significant outlays in a household balance, housing costs may indeed cause households to reduce non-housing expenditure such as health care, education, food, and clothing, thus creating serious household economic hardship. Using microdata from the European Union Statistics on Income and Living Conditions dataset (EU-SILC) regarding five European countries (Italy, Germany, UK, Spain, and France) we have examined the predictive power of housing costs in explaining family economic hardship. Furthermore, we have jointly estimated the effect of the housing cost burden upon economic hardship for renters versus home-owners paying mortgages. Results showed that housing costs represent a non negligible burden in all the five European countries. Moreover, home ownership was found to significantly reduce household hardship status.

Keywords

Financial distress Household finance Housing cost burden Tenure status 

JEL Classification

D12 D14 C24 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Dipartimento di Scienze economiche e aziendaliUniversità di CagliariCagliariItaly

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