# Wealth and Family Formation: Insights from First Cohabitation, Marriage, and Birth in Germany

## TL;DR

This study explores how wealth affects family formation events like cohabitation, marriage, and birth in Germany.

## Contribution

The study introduces gender-specific associations of homeownership with family formation events in Germany.

## Key findings

- Wealth, especially homeownership, significantly influences cohabitation, marriage, and birth.
- Homeownership has a notable impact on marriage and birth, with gender-specific patterns.
- The symbolic and use value of wealth, rather than a relative economic bar, likely shapes family formation.

## Abstract

Existing research has demonstrated that wealthier individuals differ in family formation. Potential explanations draw on wealth’s use and symbolic value as well as the relative economic bar of family formation. This study examines the relationship between wealth and three family formation events in Germany: first cohabitation, marriage, and birth. Data from the German Socio-Economic Panel Study (2002–2017) are used with multi-state, competing-risk, discrete-time event history analysis. Results show that wealth, primarily driven by homeownership, significantly influences cohabitation, marriage, and birth. The impact of homeownership is particularly notable for marriage and birth and shows gender-specific associations for cohabitants. The findings highlight the substantial influence of wealth—most likely through its symbolic and use value—in shaping family formation while indicating limited support for a relative economic bar in Germany.