Housing and Welfare Policy – Changing Relations? A Cross‐National Comparison

Abstract

This paper focuses on the role of housing in the welfare state. What are the connections between home ownership and welfare policies? And has there been a change in these connections over time? The analyses use cross‐national evidence to examine the developments and relations between levels of home ownership and welfare provision. From 1980 to 2001 public social expenditures, public expenditures on housing and home ownership have increased in most countries. Home ownership seems to play a significant role in the welfare state. Higher rate of home ownership is connected to lower public spending on welfare and income inequality both in 1980 and in 2001. The long tradition of trade‐off between home ownership and pensions also remains strong; however, the southern European countries defy this trade‐off.

Keywords:

• Home ownership
• Welfare policy
• Housing policy
• OECD countries

Notes

1. Tax expenditures on housing consist of home mortgage interest deductions and favourable taxation on housing. From a distributional perspective such tax expenditures are regressive and inefficient, as they favour the rich and homeowners at the expense of renters (Murphy and Nagel, 2002: 163–164).