Household formation,affordability, and housing policy

Over the past several decades, in Canada as elsewhere, governments have sought to provide decent, affordable housing for every household. However, viewed in aggregate, the size and extent of the affordability problem in Canada may well have worsened. This paper argues that changes in housing affordability are linked to the changing pace and character of household formation and that household formation has been responsive to a variety of public policies generally, and to housing programs in particular. Over the last four decades or so, changes in household formation have reflected policy inducements, price movements and income growth, and the substantial elasticity of demand for separate living arrangements. Even worsening indicators of affordability may actually indicate the success of modern housing policy, although this raises questions about the appropriateness of the measures, about the goals of housing programs, and about the ultimate costs of eliminating the affordability problem.     

The McMansionization of America? Income stratification and the standard of living in housing, 1960–2000

Consumption patterns and living standards are relatively neglected in stratification research even though they are important indicators of material well-being. Consumption inequality is related to income and wealth disparities through complex processes not yet well understood. This paper addresses this gap by analyzing a striking shift in the standard of living in housing in the US that occurred at the same time as a substantial increase in income inequality. Houses became significantly bigger in the 1980s and 1990s just as inequalities deepened, reversing an earlier trend towards smaller houses. Diverse theoretical traditions in the consumption and housing stratification literatures explain this shift differently, and in particular posit very different effects of rising income inequality. I derive several alternative expectations from these traditions: two predicting that the increasing size of houses was broadly shared across income levels, while another expects it represented increasing divergence in living standards, paralleling the trend in income inequality. I use US Census and American Housing Survey data and several different methods to adjudicate between these theories. The results provide some support for each of the alternative expectations, but the most significant finding is that big house ownership became more concentrated among the affluent. A focus on living standards thus uncovers a key source of rising disparities at the turn of the 21st century with important implications for wealth stratification too since houses are the major debt and asset held by most Americans.     

The Economic Theory of Fertility Over Three Decades

A large proportion of cohabitors in the Statistics Norway Omnibus Surveys of 1996 reported economic reasons for their hesitation to marry, and in particular the costs of the wedding. In line with this, the Norwegian Family and Occupation Survey of 1988 revealed effects both of women's cumulated income and men's non-employment on the actual choice of union type. Also some other evidence suggests that affordability matters, although there are plausible alternative interpretations. On the other hand, several estimates suggest that economic strength does not induce marriage. Since there also has been no deterioration of young adults' economic situation in Norway, except for the delay of economic independence owing to longer college enrolment, one can hardly claim that lack of affordability is a dominating force behind the massive drift away from marriage. The analysis is anchored in a theoretical framework that may prove useful in other studies of cohabitation as an alternative to marriage.     

Income Rich and Asset Poor: A Multilevel Analysis of Racial and Ethnic Differences in Housing Values among Baby Boomers

Race and ethnicity, as well as cohort status are strong predictors of asset ownership including home ownership and housing values. Yet, seldom have the two concepts been linked. Additionally, potentially important determinants such as business income have often times been excluded from the analyses despite findings suggesting that business income may be an important indicator for racial and ethnic minorities who would otherwise be relegated to employment in low status jobs in the secondary labor market. Using the most recent data from the Integrated Public Use Microdata Sample, this study examines: (1) How Asian, Black, Hispanic and white baby boomers compare in terms of housing values; and (2) What role business income and interest, dividends and rental income have on housing values for Asian, Black, Hispanic and white baby boomers. Significant racial and ethnic differences in housing values exist, and business income and interest, dividends and rental income are all significant indicators of housing values for all groups.     

Perceptions of Quality Life in Hamilton’s Neighbourhood Hubs: A Qualitative Analysis

This paper examines perceptions of quality of life in Hamilton, Ontario, Canada from the perspective of residents and key community stakeholders. A series of eight focus groups were conducted. Six sessions were held with residents of neighbourhood ??hubs??, areas characterized by high levels of poverty. The following themes were highlighted as significant to neighbourhood quality of life: (1) housing quality and affordability (2) diversity and cultural integration; (3) crime and safety; (4) community engagement and recreation; (5) green space and the physical environment, and; (6) transportation. Two focus groups were then conducted with key informants who provided recommendations for improving quality of life and discussed relevant policy issues such as employment and income security. The findings of the focus groups resonate with local research and policy action in Hamilton, including a new Neighbourhood Development Strategy for the City. This research advocates for decision-makers to support and work alongside context-based, resident-led community development efforts. The hub model, as well as Hamilton??s broader neighbourhood-based research and community development approach may assist social researchers, civic leaders and various levels of government across Canada as they work to improve quality of life in their communities.     

Socio-economic status and divorce in first marriages in Finland 1991-93

Abstract. Various studies report an inverse association between socio-economic status and the risk of marital disruption. Using register-based follow-up data on first marriages in Finland intact at the end of 1990 and divorces in 1991-93 (n=21 309), this study aimed at gaining a better understanding of socio-economic differentials in divorce risk by disentangling the influences of various aspects of the socio-economic status of the spouses. Indicators of socioeconomic status include each spouse's education, occupational class, economic activity, and income as well as housing tenure and housing density. When examined individually, divorce risk was inversely associated with socio-economic status for all its various indicators except wife's income. All of these factors had an independent effect on divorce risk. The effect was, however, weak for the spouses' occupational rankings and housing density, and it was positive for the wife's income. Given the multifaceted nature of these socio-economic differentials, it appears unlikely that one single explanation could account for them all.     

The Determinants of Child Health in Pakistan: An Economic Analysis

This paper estimates linear structural models using LISREL and employs MIMIC models to find out factors determining child health in Pakistan. A distinction has been made in permanent and transitory health states that lend support to Grossman’s (1972) stock and flow concepts of health. The paper addresses the issue of health unobservability and finds out that latent variables using MIMIC models best represent underlying child health states. To overcome problems of poor income data, factor analysis is applied to extract measures of housing and durables as indicators of socio-economic well-being of children in Pakistan. The results of the study show that child health states, both permanent and transitory, are affected significantly by factors such as parental education, socio-economic conditions, and health care variables.     

Housing Conditions of Nuclear and Extended Households in the Miami-Fort Lauderdale Area

Arrivals of new immigrants into the south Florida area have put increased pressure on housing markets and fostered renewed efforts to provide more affordable housing. Many view household extension largely as a response to the lack of a sufficient amount of affordable housing. This paper examines the nature, proportion and housing condition of nuclear and extended households in the Miami-Fort Lauderdale area. The study also investigates how the incidence and housing situation of extended households has changed during the period from 1986 to 1990. This study illustrates that extended families in the Miami-Fort Lauderdale area are not uniformly worse off than nuclear families, given ethnicity and income level. While the area's housing problems require attention, some of that attention should be focused on removing institutional barriers to household extension and to providing broader housing choices for minority ethnic groups.     

The Quality of Life of Hong Kong’s Poor Households in the 1990s: Levels of Expenditure,Income Security and Poverty

This paper examines the changes in the quality of life of poor households in Hong Kong in the late 1990s by analyzing their levels of expenditure, income security and poverty before and after 1997. Though there have been significant increases in the levels of expenditure among CSSA recipients, the expenditure among these poorest households in Hong Kong is still below that of non-CSSA recipients. Increasing poverty in Hong Kong is the result of increasing housing costs borne by these low expenditure households, who have to squeeze their expenditure on food and other items in order to meet the rising cost of housing. De-industrialisation and mass unemployment have given capital and the state unchecked authority to restructure the economy and to deregulate the labour market. Many low-income households have been hit hard as they faced redundancy, unemployment and wage-cuts after the 1997 Asian financial crisis. What jobs have been created are mostly part-time, temporary and contract jobs, and there has thus been an erosion in both job and income security. The quality of life of poor households is devastating not only in the sense that their living standards are low, but also that they are socially excluded from the mainstream of society.     

The Quality of Life of Hong Kong’s Poor Households in the 1990s: Levels of Expenditure, Income Security and Poverty

This paper examines the changes in the quality of life of poor households in Hong Kong in the late 1990s by analyzing their levels of expenditure, income security and poverty before and after 1997. Though there have been significant increases in the levels of expenditure among CSSA recipients, the expenditure among these poorest households in Hong Kong is still below that of non-CSSA recipients. Increasing poverty in Hong Kong is the result of increasing housing costs borne by these low expenditure households, who have to squeeze their expenditure on food and other items in order to meet the rising cost of housing. De-industrialisation and mass unemployment have given capital and the state unchecked authority to restructure the economy and to deregulate the labour market. Many low-income households have been hit hard as they faced redundancy, unemployment and wage-cuts after the 1997 Asian financial crisis. What jobs have been created are mostly part-time, temporary and contract jobs, and there has thus been an erosion in both job and income security. The quality of life of poor households is devastating not only in the sense that their living standards are low, but also that they are socially excluded from the mainstream of society.     

Comparison of Urban Housing Satisfaction in Modern and Traditional Neighborhoods in Edirne,Turkey

Numerous cross-cultural studies have focused on certain aspects of urban housing conditions and their social consequences. However, most data on housing satisfaction is restricted to Western countries. Relatively little comparison has been made between these findings and those in developing areas where rapid urbanization is occurring and where concomitant problems in urban housing are emerging. Moreover, since primary cities of developing countries in the initial stage of economic development have received extensive attention in urban housing research, it would be interesting to examine a non-primary city where relatively good standards of living have been achieved. Thus, this study investigates people’s housing satisfaction in modern and historical neighborhoods. This paper addresses some conceptual and measurement issues related to the study of housing satisfaction. We build a conceptual model, which links the multiple dimensions of housing satisfaction, measured by a modified version of Bardo and Dokmeci’s (1992, Genetic, Social and General Psychology Monographs 118(3)) housing satisfaction scale, in a causal sense. An empirical examination of the model in traditional and modern neighborhoods reveals that social and environmental living conditions positively influence overall housing satisfaction. The results also indicate that the drivers of the social and environmental living conditions constructs differ between traditional and modern neighborhoods.     

新生代农民工住房需求特征与政策回应研究—基于重庆的调查

新生代农民工是我国城市化进程中需要面对的新群体,其住房问题是现阶段城镇住房保障领域的主要问题之一,事关我国城市化质量的提升和可持续发展。本文通过问卷调查和深入访谈的形式,对新生代农民工在城市居住现状、需求特征和住房意愿等问题进行了调查研究。结果显示,新生代农民工群体居住拥挤、条件简陋、教育医疗配套少,住房问题十分严峻。文章最后从户籍制度调整、阶梯型住房政策以及建立有针对性的保障措施等方面提出了提升新生代农民工住房保障的对策。     

Engel functions revisited

Engel functions for the United States, based on cross-sectional data for 1972–73, are compared with those for 1960–61. Elasticities of expenditure for major categories of consumption are consistent with those found in other countries at various levels of economic development. However, elasticities for specific items within major categories varied markedly. Rental housing emerges as an inferior good. Superior goods are grouped into four major classes based on expenditure elasticities. Low elasticities tended to decline over time and were associated with positive family size elasticities. Expenditure elasticities that were high tended to become still higher over time and were associated with negative family size elasticities. An examination of expenditure elasticities across income classes indicates that ‘rich’ and ‘poor’ families have become more alike with respect to expenditures for ‘necessities’ but more unlike with respect to expenditures for ‘luxuries’ — education, recreation, owner housing, and men's and women's clothing. As incomes have risen, the composition of consumption has changed, as have the meaning and character of poverty. Questions are raised concerning the significance and research implications of the declining achievement/aspiration ratio for certain kinds of goods and services for many consumers within the United States and for most consumers in countries where incomes have risen less relatively and absolutely than have those of families in highly developed economies.     

Superimpose Material Deprivation Study on Poverty Old Age People in Hong Kong Study

Due to a range of shortcomings of income-based measures of poverty in older people, an alternative approach is proposed to counteract those shortcomings. Hong Kong index of material deprivation aims to identify a consensus-based list of goods and services that are necessities in society and to establish that these goods and services are not available due to their lack of affordability. This paper reports on the validation of Hong Kong index of material deprivation based on an approach proposed by Townsend (Poverty in the United Kingdom, Penguin Books, London, 1979) in Hong Kong. Through a survey of 2339 older Chinese people aged 65 and older, we found that a broad consensus regarding the necessities in their daily lives exists and Hong Kong index of material deprivation is a reliable and valid measure of poverty because its reliability and validity is good and acceptable. Finally, we have shown that the overlap between the poor in terms of income and the deprived is moderate and the profiles of those who are core poor (both poor in terms of income and the deprived) are more similar to those who are deprived than those who are poor in terms of income. Hong Kong index of material deprivation index has been developed, which offers a supplementary measure of poverty other than income poor and provides future avenues for improved understandings of poverty in old age.     

The Perception of Anti-corruption Efficacy in China: An Empirical Analysis

As corruption affects people in all walks of life, public reactions to corruption and citizens’ views of the government’s anti-corruption effort are critically important. Any government seeking to make effective policy against corruption must obtain public trust and support, which provides the much-needed legitimacy for policy enforcement. In this study, we drew on a survey of 1,604 randomly selected residents in Shanghai in 2008 to examine the perceptions and attitudes of Chinese citizens towards the government’s anti-corruption effort. Specifically, we focussed on the “sense of anticorruption efficacy,” defined as people’s expectation for positive anti-corruption outcomes. We addressed two questions. To what extent the public was confident in the government’s anti-corruption efficacy? What factors explained the variation in people’s perceptions of anti-corruption efficacy? Results indicated that two salient factors could affect an individual’s sense of anti-corruption efficacy. First, as corruption contributed to social disparity, the perceived unfairness of income distribution exacerbated people’s expectation for anti-corruption efficacy. Secondly, an accepting attitude towards power intrusion into income distribution diluted the positive impact of the perception of unfair distribution on people’s expectation for anti-corruption efficacy. We take from the results that to what extent people expect the government to make effective effort to control corruption is determined by both economic and political factors. People develop high expectation for anti-corruption reform when they are unhappy not only with the lack of fairness in income distribution but also with the intrusion of political power into economic affairs which, if unconstrained, often gives rise to corruption.     

Immigration and the public sector: Income effects for the native population in Sweden

The immigrants' age structure and labour market situation are major determinants for their net contribution to the public sector. During the 50s, 60s and the 70s the immigrants' net contributions gave positive income effects for the native Swedes. Nowadays there are negative income effects due to the deteriorating employment situation among the immigrants. The yearly positive or negative income effects have at most been 1–2% of the gross national product. A change in the immigrants' employment rate by 1 percentage unit will change their yearly net contribution to the public sector by 0.1% of the gross national product. Received: 2 February 1996/Accepted: 28 July 1998     

Multidimensional Poverty in Nicaragua: Are Female-Headed Households Better Off?

The recognition of poverty as a multidimensional concept has led to the development of more adequate tools for its identification. By allowing for subgroup and regional decompositions, those instruments are useful to allocate public action where most needed. This paper applies the Alkire and Foster (2011a) Multidimensional Poverty Index (MPI) to study single-mother and biparental families in Nicaragua, modifying its original structure to match more closely with the country’s current structural problems. Using Nicaragua’s last Demographic and Health Survey (DHS 2011/2012), our multidimensional poverty figures contrast with the government’s national poverty line estimates, suggesting that income poverty overestimates the number of poor people. Thus, our MPI can help as a complement for traditional consumption poverty and Basic Needs analysis; even extending the exploration by using other official household surveys. On the other hand, multidimensional poverty analysis found poverty dominance of male-headed families over single-mother and female-headed biparental families, which serves to contradict the notion of women being more vulnerable than men. Within the MPI, the most important contributor was the Living Standards dimension, composed by indicators directly related to housing conditions, and the second most deprived dimension was Education. A strong policy implication that arises from our findings is the reduction of the urban–rural poverty gap. Specifically, our findings exalt the need for governmental policies directed to reduce Nicaragua’s housing and educational deficits as a priority, particularly in rural areas.     

Monitoring Socio-demographic Risk: A Cohort Analysis of Families Using Census Micro-Data

We apply cohort techniques to monitor four indicators of socio-demographic risk crucial to family wellbeing; namely, income, employment, education, and housing. The data were derived from New Zealand??s five-yearly Census for the period 1981?C2006. This allowed us to track birth cohorts of mothers (and their families) over six successive New Zealand censuses focusing on the main childrearing ages of 20?C59. This produced ten cohorts??termed ??open familial cohorts????ranging from mothers born in the period 1932?C1937 through to 1977?C1981. We present age, period and cohort analyses. Families in which the mother is in her early 20s were the most vulnerable, with the lowest incomes, the greatest risk of worklessnes, and the lowest levels of home ownership. Of particular interest is that those in the most recent cohorts??born since 1967??were worse off compared to earlier cohorts. The period from the mid-1980s to the mid-to-late 1990s was one of greatest ??socio-demographic risk??, with the lowest work, income and education prospects over the 25?years. The picture on generational profiles was mixed. Contrary to popular mythology the ??baby-boomer?? cohorts did not enjoy an unqualified advantage over others; indeed the most recent cohorts were doing well, with relatively high incomes, education and work levels. The analysis is successful in identifying age and period effects over a period of major social change, and in documenting cohort experiences for each indicator, thus demonstrating the potential of constructing cohorts from routinely-collected census micro-data for monitoring and policy purposes.     

Social Impacts of the Marking Scheme in Public Housing in Hong Kong

To improve environmental hygiene in public housing estates in Hong Kong, the Housing Department launched the Marking Scheme for Tenancy Enforcement in Public Housing Estates in 2003. The marking scheme operates as a penalty-point system where sitting tenants will be expelled from their public housing units if they receive penalty points up to a certain level for committed misdeeds. By its nature, the marking scheme is a measure to tackle neighbourhood problems or so-called antisocial behaviour (ASB) in public housing. Yet, it was implemented without comprehensive public consultation a priori. Besides, why this control selectively targets public housing tenants but not residents in other housing tenures is not justified. More importantly, no previous attempt has been made to investigate the impacts of the marking scheme. To straddle the existing research gap, this study aims to explore the social impacts brought about by the marking scheme on public housing tenants through a structured questionnaire survey. In the respondents’ eyes, the effectiveness of the scheme to rectify public housing tenants’ bad behaviour is doubtful. Moreover, harmony within families and neighbourliness seems to be undermined by the scheme. Recommendations are then provided to public administrators regarding ASB control in Hong Kong.     

Measuring cultural bias in a cross-national study

Cross-national research claims increasing attention, due in part to a growing awareness of worldwide interdependence. One of the most intriguing areas of research is the comparison of perceptions about the quality of life. However, even the first attempt to compare cross-national quality of life perceptions (Cantril, 1965) raised a question which still remains unanswered: What do the differences between countries mean? Presumably differences in income, in the objective conditions of the major life domains such as housing, health and employment, and in demographic variables account for some of the difference among countries' reported quality of life satisfaction. But how can these factors be separated from other non-random factors? The term we use for the latter is “cultural bias”. By cultural bias we mean the systematic cross-national differences in quality of life perceptions which are not explained by objective measures of quality of life nor by demographic factors. Ordinarily these culture-specific biases are acquired during the socialization process almost as automatically and unconsciously as one learns one's mother tongue. Cultural bias is manifested in the tendency for members of a particular culture to be optimistic or pessimistic, confident or cautious in evaluating their social and physical environment and in revealing these evaluations to others. Thus, our conception of cultural bias has something in common with the idea of national character, but it is more limited in scope. In this paper we discuss the problem of isolating the impact of cultural bias from the other factors affecting how people perceive their quality of life and measuring it. We describe a method which is capable of doing this and report the results of using it to measure the relative cultural bias between respondents in Springfield, Illinois and Aixen-Provence, France.