Abstract
AbstractWe empirically examine the nexus between Locus of Control (LoC) and housing tenure in Australia. Drawing on data from the Household, Income and Labour Dynamics Survey for the period 2001–2021, we find that being internal on LoC is associated with a higher likelihood of homeownership and transitioning from renting to owning a home, while being external on LoC is more likely to lead to the opposite. This result is consistent across multiple robustness checks. We also find evidence that social capital and income are transmission mechanisms through which LoC influences housing tenure. We provide some suggestions for policy.
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