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Draft Tenure Choice with Sample Selection: A Note on the Differences among Alternative Samples

By  and Gary Painter and Gary Painter


Most tenure choice models using cross sectional data have used either a sample of recent movers or a sample comprising all households. There are problems with estimating both types of models in cross sectional data. A sample of recent movers oversamples renters, and a sample of all households will yield estimates based on household decisions made in the past. This research designs a method to correct for sample selection in a sample of recent movers. There are large differences in the importance of age and immigrant status and duration as a predictor of homeownership. At the same time, income effects are similar across models. JEL classification: R2

Topics: Tenure choice, Housing Demand
Year: 2000
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