Welfare housing and household consumption in urban China

Abstract

This study investigates the long-term impact of access to welfare housing ownership on household consumption using data from the China Family Panel Studies (2010 to 2018). Our results show that households that owned welfare housing had a higher level of consumption than those without access to such housing, even after controlling for the housing wealth effect. This positive impact on consumption was particularly significant for low-consumption households. We found that welfare housing ownership increased consumption through reducing household debts, enhancing consumer confidence, and facilitating further accumulation of assets.