Housing, the welfare state and poverty: On the financialization of housing and the dependent variable problem

The comparative study of housing systems enjoys a disjointed relationship with comparative literature on the welfare state and poverty, a separation which has been to the detriment of each of these fields. Such are its implications for the income distribution that the concept of financializaton developed in housing studies provides potentially rich raw material for welfare state and poverty literature. However, there are also limitations in the way in which financializaton has been operationalized in housing studies: definitions are often inconsistent, and it has proven challenging to identify indicators that measure convincingly the multiple dimensions of financialization. We argue that greater consideration of the dependent variable problem, extensively discussed in the welfare state literature, but generally neglected in housing studies, can advance understanding of housing market financialization and its effects. A greater integration of scholarship on the welfare state, housing studies and poverty would be to mutual benefit.

Automated summary

The comparative study of housing systems has a disjointed relationship with comparative literature on the welfare state and poverty, to the detriment of each field. The concept of financialization developed in housing studies provides rich material for welfare state and poverty literature, but there are limitations in its operationalization. Considering the dependent variable problem can advance understanding of housing market financialization and its effects, and a greater integration of scholarship on the welfare state, housing studies, and poverty would be mutually beneficial.