Individual Payoffs and the Effect of Homeownership on Social Capital Investment

We revisit the relation between homeownership and social capital investment with confidential individual-level panel data from Los Angeles County. Using anticipated real wage change as an instrument for ownership, we find strong evidence that homeownership increases participation in block meetings,...

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Bibliographic Details
Published in:Journal of housing research 2018-01, Vol.27 (1), p.59-78
Main Authors: Fesselmeyer, Eric, Seah, Kiat Ying
Format: Article
Language:English
Subjects:
Capital investments
Econometrics
Economic models
Economics
Election results
Essays
Estimates
Externality
Home ownership
Homeowners
Hypotheses
Identification
Individual differences
Interest groups
Investment
Investments
Local elections
Low income groups
Meetings
Neighborhoods
Ownership
Panel data
Participation
Payoffs
Political organizations
Property values
Social capital
Sociology
Volunteers
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Summary:We revisit the relation between homeownership and social capital investment with confidential individual-level panel data from Los Angeles County. Using anticipated real wage change as an instrument for ownership, we find strong evidence that homeownership increases participation in block meetings, and find no homeownership effect on three other activities: volunteerism, participation in a local political organization, and participation in a civic group. These results are confirmed in fixed effects models. Our results support a pecuniary motive: that homeownership increases social capital investment when such investments are perceived to generate gains solely for homeowners.
ISSN:1052-7001
2691-1337
DOI:10.1080/10835547.2018.12092141