Comparing Overall Effects of Family Background on Homeownership During Early Life Course

This paper considers the overall effect of family background on homeownership by applying sibling correlation models. Sex differences, differences between singles and couples, and variation during the early life course (25-35 years old) are analysed using Finnish register data. These models enable the estimation of the overall effect of the family background, irrespective of identifying mechanisms behind these effects. The results indicate that family background has a significant effect, explaining around 11 per cent of the variation in the probability of homeownership. The effects for men living without a partner were significantly higher than for men living with a partner: around 24 per cent and 12 per cent, respectively. No corresponding difference for women could be established. These findings suggest that the effect of family background on homeownership is, in general, high and especially so for single men.