We develop and calibrate an analytical growth model in the Post-Keynesian tradition with an endogenous wealth distribution and differential returns to wealth between workers and capitalists. We show that a long-run equilibrium allows for non-zero wealth owned by workers, even as the model contains the "triumph of the rentier" predicted by Piketty as a special case. The model's calibration to ten European countries shows that the distribution of wealth is likely to become more unequal in all cases, barring political countermeasures.

We study whether the positive effects of homeownership on political participation and social capital, found in developed market economies, extend to post-communist countries. We use the privatisation of publicly owned housing in post-communist countries as an exogenous source of variation of homeownership status to identify its impact on political participation and social capital formation. We find that homeownership is strongly related to higher participation in local-level and national elections. In post-communist countries, homeownership is also related to higher social trust. However, the positive association between homeownership and volunteering found in developed market economies does not extend to postcommunist countries. Together, our results corroborate that homeownership is associated with positive social benefits. However, these effects are highly heterogeneous and context-dependent.