Does Housing Inequality Affect Residents' Social Status Perceptions? Evidence from CGSS in China

Abstract

This paper measures housing inequality from two dimensions: housing quantity and living space. Using CGSS data and an ordered probit model, it empirically examines the causal relationship between housing inequality and residents' subjective social status. The research indicates that housing inequality significantly influences residents' social status perception. The greater the quantity of housing and the larger the living space, the higher the residents' subjective social status. This conclusion remains robust after conducting sensitivity tests. Mechanistic analyses show that the wealth effect is the transmission pathway through which housing inequality affects individuals' social status perceptions. Heterogeneity analyses showed that housing inequality significantly exacerbated social stratification, which was particularly evident in age. Further analysis reveals that housing assets not only have significant impacts on the present but also serve as a key factor in enhancing intergenerational mobility in the future. This study explains the drivers of residents' social status perceptions from the perspective of housing inequality, and provides empirical evidence and policy insights for China to improve the long-term mechanism of real estate, and to prevent the risk of social status perceptions divergence due to housing allocation.