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Eviction and Poverty in American Cities

Author

Listed:
  • Robert Collinson
  • John Eric Humphries
  • Nicholas S. Mader
  • Davin K. Reed
  • Daniel I. Tannenbaum
  • Winnie van Dijk
Abstract
More than two million U.S. households have an eviction case filed against them each year. Policymakers at the federal, state, and local levels are increasingly pursuing policies to reduce the number of evictions, citing harm to tenants and high public expenditures related to homelessness. We study the consequences of eviction for tenants using newly linked administrative data from two major urban areas: Cook County (which includes Chicago) and New York City. We document that prior to housing court, tenants experience declines in earnings and employment and increases in financial distress and hospital visits. These pre-trends pose a challenge for disentangling correlation and causation. To address this problem, we use an instrumental variables approach based on cases randomly assigned to judges of varying leniency. We find that an eviction order increases homelessness and hospital visits and reduces earnings, durable goods consumption, and access to credit in the first two years. Effects on housing and labor market outcomes are driven by impacts for female and Black tenants. In the longer-run, eviction increases indebtedness and reduces credit scores.

Suggested Citation

  • Robert Collinson & John Eric Humphries & Nicholas S. Mader & Davin K. Reed & Daniel I. Tannenbaum & Winnie van Dijk, 2022. "Eviction and Poverty in American Cities," NBER Working Papers 30382, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30382
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    Cited by:

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    2. Charles Ka Yui LEUNG, 2022. "Housing and Macroeconomics," ISER Discussion Paper 1197, Institute of Social and Economic Research, Osaka University.
    3. Graetz, Nick & Gershenson, Carl & Porter, Sonya R. & Sandler, Danielle H. & Lemmerman, Emily & Desmond, Matthew, 2024. "The impacts of rent burden and eviction on mortality in the United States, 2000–2019," Social Science & Medicine, Elsevier, vol. 340(C).
    4. Giacomo De Giorgi & Enrico Moretti & Harrison Wheeler, 2024. "Gentrification, Mobility, and Consumption," Papers 2407.06695, arXiv.org.
    5. Brian J. Asquith, 2022. "The Effects of an Ellis Act Eviction on Neighborhood Socioeconomic Status," Upjohn Working Papers 22-374, W.E. Upjohn Institute for Employment Research.
    6. Johannes W. Ligtenberg & Tiemen Woutersen, 2024. "Multidimensional clustering in judge designs," Papers 2406.09473, arXiv.org.

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    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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