Incentives and Social Capital: Are Homeowners Better Citizens?

Journal of Urban Economics

Posted: 20 Apr 1998

See all articles by Denise DiPasquale

Denise DiPasquale

City Research

Edward L. Glaeser

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

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Abstract

Homeownership may encourage investment in local amenities and social capital, both because homeownership gives individuals an incentive to improve their community and because homeownership creates barriers to mobility. Using the U.S. General Social Survey, we document that homeowners invest more in social capital; a simple instrumental variables strategy suggests that the relationship may be casual. We also find evidence that a large portion of the effect of homeownership on these investments comes from lower mobility rates for homeowners. Using the German Socio-Economic Panel, we find a connection between homeownership and citizenship controlling for individual fixed effects.

JEL Classification: H80

Suggested Citation

DiPasquale, Denise and Glaeser, Edward L., Incentives and Social Capital: Are Homeowners Better Citizens?. Journal of Urban Economics, Available at SSRN: https://ssrn.com/abstract=75609

Denise DiPasquale

City Research ( email )

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Edward L. Glaeser (Contact Author)

Harvard University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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