The dynamics of housing deprivation

This paper aims to present an assessment of the dynamics of housing deprivation through latent variable models taking Spain as reference. The first five waves of the European Community Household Panel (ECHP) are used to analyze the nature and extent of the persistence of housing deprivation and the determinants of the flows into and out of this state. Discrete time duration models are estimated to identify which households have a higher risk of suffering housing deprivation on a persistent basis. Our results show that almost half the households have gone through some kind of housing deprivation during the period under study while in cross-sectional studies only a 20% of population appears to have done so. The results suggest not only that there are groups running a greater housing deprivation risk but also that some face a greater probability of being in this state on a persistent basis.