Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://doi.org/10.17645/si.v11i1.5875 |
Resumo: | A crucial function of wealth is to protect individuals from the consequences of adverse life events. However, sometimes wealth also implies additional financial risks. In addition to the insurance function of homeownership (the most common form of wealth), we therefore also examine financial squeezes that reflect the indebtedness and social embeddedness of homeowners and limit their options for dealing with social risks. A third hypothesis expects a trade‐off between social protection and homeownership. Taking the example of unemployment, we examine the effects of short‐term unemployment on the perceived financial situation of households based on data derived from EU‐SILC for 27 European countries. It can be shown that debt‐free homeownership reduces financial stress in the case of unemployment compared to tenants and indebted owners. A debt‐free home thus offers an additional buffer and insurance against the financial consequences of unemployment. However, indebted homeowners are particularly hard hit by unemployment because they have to use all their financial resources to pay off their mortgages. Finally, we did not find a trade‐off but a cumulation of advantages due to homeownership and generous unemployment benefits in countries with high net replacement rates. |
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Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europefinancial stress; homeownership; mortgage; unemployment; wealth inequalityA crucial function of wealth is to protect individuals from the consequences of adverse life events. However, sometimes wealth also implies additional financial risks. In addition to the insurance function of homeownership (the most common form of wealth), we therefore also examine financial squeezes that reflect the indebtedness and social embeddedness of homeowners and limit their options for dealing with social risks. A third hypothesis expects a trade‐off between social protection and homeownership. Taking the example of unemployment, we examine the effects of short‐term unemployment on the perceived financial situation of households based on data derived from EU‐SILC for 27 European countries. It can be shown that debt‐free homeownership reduces financial stress in the case of unemployment compared to tenants and indebted owners. A debt‐free home thus offers an additional buffer and insurance against the financial consequences of unemployment. However, indebted homeowners are particularly hard hit by unemployment because they have to use all their financial resources to pay off their mortgages. Finally, we did not find a trade‐off but a cumulation of advantages due to homeownership and generous unemployment benefits in countries with high net replacement rates.Cogitatio Press2023-02-15info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://doi.org/10.17645/si.v11i1.5875https://doi.org/10.17645/si.v11i1.5875Social Inclusion; Vol 11, No 1 (2023): Wealth Stratification and the Insurance Function of Wealth; 163-1752183-2803reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAPenghttps://www.cogitatiopress.com/socialinclusion/article/view/5875https://www.cogitatiopress.com/socialinclusion/article/view/5875/5875https://www.cogitatiopress.com/socialinclusion/article/downloadSuppFile/5875/2531Copyright (c) 2022 Martin Heidenreich, Sven Broschinskiinfo:eu-repo/semantics/openAccessHeidenreich, MartinBroschinski, Sven2023-06-29T13:15:26Zoai:ojs.cogitatiopress.com:article/5875Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:46:43.199297Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
title |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
spellingShingle |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe Heidenreich, Martin financial stress; homeownership; mortgage; unemployment; wealth inequality |
title_short |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
title_full |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
title_fullStr |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
title_full_unstemmed |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
title_sort |
Is Property an Insurance or an Additional Burden? Financial Stress Among Homeowners in Europe |
author |
Heidenreich, Martin |
author_facet |
Heidenreich, Martin Broschinski, Sven |
author_role |
author |
author2 |
Broschinski, Sven |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Heidenreich, Martin Broschinski, Sven |
dc.subject.por.fl_str_mv |
financial stress; homeownership; mortgage; unemployment; wealth inequality |
topic |
financial stress; homeownership; mortgage; unemployment; wealth inequality |
description |
A crucial function of wealth is to protect individuals from the consequences of adverse life events. However, sometimes wealth also implies additional financial risks. In addition to the insurance function of homeownership (the most common form of wealth), we therefore also examine financial squeezes that reflect the indebtedness and social embeddedness of homeowners and limit their options for dealing with social risks. A third hypothesis expects a trade‐off between social protection and homeownership. Taking the example of unemployment, we examine the effects of short‐term unemployment on the perceived financial situation of households based on data derived from EU‐SILC for 27 European countries. It can be shown that debt‐free homeownership reduces financial stress in the case of unemployment compared to tenants and indebted owners. A debt‐free home thus offers an additional buffer and insurance against the financial consequences of unemployment. However, indebted homeowners are particularly hard hit by unemployment because they have to use all their financial resources to pay off their mortgages. Finally, we did not find a trade‐off but a cumulation of advantages due to homeownership and generous unemployment benefits in countries with high net replacement rates. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-02-15 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://doi.org/10.17645/si.v11i1.5875 https://doi.org/10.17645/si.v11i1.5875 |
url |
https://doi.org/10.17645/si.v11i1.5875 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://www.cogitatiopress.com/socialinclusion/article/view/5875 https://www.cogitatiopress.com/socialinclusion/article/view/5875/5875 https://www.cogitatiopress.com/socialinclusion/article/downloadSuppFile/5875/2531 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2022 Martin Heidenreich, Sven Broschinski info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2022 Martin Heidenreich, Sven Broschinski |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Cogitatio Press |
publisher.none.fl_str_mv |
Cogitatio Press |
dc.source.none.fl_str_mv |
Social Inclusion; Vol 11, No 1 (2023): Wealth Stratification and the Insurance Function of Wealth; 163-175 2183-2803 reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
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1799130938422067200 |