Intergenerational transmission of homeownership in Europe: revisiting the socialisation hypothesis.

Socialisation towards homeownership during childhood has been proposed as one transmission channel of homeownership across generations in previous literature, but tests of this socialisation hypothesis are scarce. This study presents the yet most rigorous test of the socialisation hypothesis using retrospective life-history data (SHARELIFE, N=19,567 individuals) from 13 European countries. Event history and panel regression models are applied. Results show that socialisation in homeownership positively affects the hazard rates of entering homeownership for the first time and the probability to be a homeowner throughout individuals' lives net of other parental background variables and material transfers. We find a socialisation effect across divergent (but not all) examined countries. Further sensitivity analyses using a placebo test and a hypothetical confounder support the conclusion that being socialised in homeownership during childhood increases the chances of becoming and being a homeowner in later life.