The effect of inequality of opportunity (IO) on housing accessibility: Evidence from China

Housing accessibility has become an increasingly serious social problem in China, with income inequality possibly being an important cause. Based on the panel data of the China Family Panel Studies (CFPS), this paper explores the structure of income inequality, and finds that inequality of opportunity (IO), the main component of income inequality, has a significantly negative effect on housing accessibility in China. The mechanism analysis proves that less loan availability caused by IO may be one important channel. Additionally, the heterogeneity analysis reveals that such influence is more significant in some specific groups, such as those with lower educational attainment, rural hukou status, and lower household income level.