CASE Social Exclusion Seminars
Local economic inequality and household borrowing in the UK
Joel Suss (Bank of England; CASE and International Inequalities Institute, LSE visiting fellow)
Wednesday 07 June 2023 12:00 - 13:00
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
This seminar focuses on research which investigates the relationship between economic inequality and household borrowing using the UK's Wealth and Assets Survey data and granular, neighbourhood-level estimates of inequality. Using this unique data, it is evident that lower income households borrow more and are under greater financial distress, both objectively and subjectively, when local inequality is higher. There is evidence that this result is driven by the demand side – in line with social comparison theories of household spending and consumption behaviour, demand for credit is greater for lower income households in areas with greater inequality.