Study Reveals Homeowners Better Insured Against Income Shocks Than Renters
The article measures how well households can maintain their spending when their income changes. By studying data from a survey in Spain, researchers found that households are fully protected from temporary income changes but only partially protected from long-term income changes. For example, a 10% drop in long-term income leads to a 7.8% decrease in spending. Homeowners and more educated households have better protection against income changes.