Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17359.html
   My bibliography  Save this paper

Affordable Housing and Individual Labor Market Outcomes

Author

Listed:
  • Dauth, Wolfgang

    (Institut für Arbeitsmarkt- und Berufsforschung)

  • Mense, Andreas

    (Institute for Employment Research (IAB), Nuremberg)

  • Wrede, Matthias

    (Friedrich-Alexander-Universität Erlangen-Nürnberg)

Abstract
We investigate the employment effects of living in affordable housing. We develop a unique administrative data set of labor market biographies linked to affordable housing projects in five German cities. This allows us to follow individuals in affordable housing over almost 20 years. The funding scheme is similar to the American LIHTC program, so the results are applicable beyond Germany. We use an event study design to exploit the quasi-random timing and allocation of applicants to units. Our findings show that access to affordable housing increases labor income and job quality while decreasing the likelihood of being unemployed. We explain these results by four mechanisms. These mechanisms work through a higher centrality of affordable units, enabling investment in work-related skills, improved housing stability, and increasing work incentives due to reduced housing benefit payments.

Suggested Citation

  • Dauth, Wolfgang & Mense, Andreas & Wrede, Matthias, 2024. "Affordable Housing and Individual Labor Market Outcomes," IZA Discussion Papers 17359, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17359
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17359.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2021. "Gender Differences in Job Search: Trading off Commute against Wage," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(1), pages 381-426.
    2. Jorge De La Roca & Diego Puga, 2017. "Learning by Working in Big Cities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(1), pages 106-142.
    3. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    4. Fack, Gabrielle, 2006. "Are housing benefit an effective way to redistribute income? Evidence from a natural experiment in France," Labour Economics, Elsevier, vol. 13(6), pages 747-771, December.
    5. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 953-966, December.
    6. John C. Haltiwanger & Mark J. Kutzbach & Giordano Palloni & Henry O. Pollakowski & Matthew Staiger & Daniel H. Weinberg, 2020. "The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes," Working Papers 20-39, Center for Economic Studies, U.S. Census Bureau.
    7. Henry O. Pollakowski & Daniel H. Weinberg & Fredrik Andersson & John C. Haltiwanger & Giordano Palloni & Mark J. Kutzbach, 2022. "Childhood Housing and Adult Outcomes: A Between-Siblings Analysis of Housing Vouchers and Public Housing," American Economic Journal: Economic Policy, American Economic Association, vol. 14(3), pages 235-272, August.
    8. Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 654-666, June.
    9. Philip Oreopoulos, 2003. "The Long-Run Consequences of Living in a Poor Neighborhood," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1533-1575.
    10. Robert Collinson & Peter Ganong, 2018. "How Do Changes in Housing Voucher Design Affect Rent and Neighborhood Quality?," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 62-89, May.
    11. Brian A. Jacob & Jens Ludwig, 2012. "The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery," American Economic Review, American Economic Association, vol. 102(1), pages 272-304, February.
    12. Rebecca Diamond & Tim McQuade, 2019. "Who Wants Affordable Housing in Their Backyard? An Equilibrium Analysis of Low-Income Property Development," Journal of Political Economy, University of Chicago Press, vol. 127(3), pages 1063-1117.
    13. Aliprantis, Dionissi & Hartley, Daniel, 2015. "Blowing it up and knocking it down: The local and city-wide effects of demolishing high concentration public housing on crime," Journal of Urban Economics, Elsevier, vol. 88(C), pages 67-81.
    14. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 607-654.
    15. Eric Chyn, 2018. "Moved to Opportunity: The Long-Run Effects of Public Housing Demolition on Children," American Economic Review, American Economic Association, vol. 108(10), pages 3028-3056, October.
    16. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    17. Michael D. Eriksen & Amanda Ross, 2015. "Housing Vouchers and the Price of Rental Housing," American Economic Journal: Economic Policy, American Economic Association, vol. 7(3), pages 154-176, August.
    18. Brian A. Jacob & Max Kapustin & Jens Ludwig, 2015. "The Impact of Housing Assistance on Child Outcomes: Evidence from a Randomized Housing Lottery," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 465-506.
    19. Carlson, Deven & Haveman, Robert & Kaplan, Tom & Wolfe, Barbara, 2012. "Long-term earnings and employment effects of housing voucher receipt," Journal of Urban Economics, Elsevier, vol. 71(1), pages 128-150.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthias Wrede, 2024. "Housing Cooperatives, Housing Affordability, and Rent Control," CESifo Working Paper Series 11452, CESifo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian A. L. Hilber & Olivier Schoni, 2022. "Housing policy and affordable housing," CEP Occasional Papers 56, Centre for Economic Performance, LSE.
    2. Matthias Wrede, 2024. "Housing Cooperatives, Housing Affordability, and Rent Control," CESifo Working Paper Series 11452, CESifo.
    3. Mense, Andreas, 2020. "The Impact of New Housing Supply on the Distribution of Rents," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224569, Verein für Socialpolitik / German Economic Association.
    4. Fredrik Andersson & John C. Haltiwanger & Mark J. Kutzbach & Giordano Palloni & Henry O. Pollakowski & Daniel H. Weinberg, 2013. "Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing," Working Papers 13-48, Center for Economic Studies, U.S. Census Bureau.
    5. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    6. Lorenzo Neri, 2020. "Moving Opportunities: The Impact of Public Housing Re-generations on Student Achievement," Working Papers 907, Queen Mary University of London, School of Economics and Finance.
    7. William N. Evans & David C. Phillips & Krista Ruffini, 2021. "Policies To Reduce And Prevent Homelessness: What We Know And Gaps In The Research," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 914-963, June.
    8. Eerola, Essi & Saarimaa, Tuukka, 2018. "Delivering affordable housing and neighborhood quality: A comparison of place- and tenant-based programs," Journal of Housing Economics, Elsevier, vol. 42(C), pages 44-54.
    9. Chapelle, Guillaume & Domènech Arumí, Gerard & Gobbi, Paula Eugenia, 2023. "Housing, Neighborhoods and Inequality," CEPR Discussion Papers 17969, C.E.P.R. Discussion Papers.
    10. William N. Evans & David C. Philips & Krista J. Ruffini, 2019. "Reducing and Preventing Homelessness: A Review of the Evidence and Charting a Research Agenda," NBER Working Papers 26232, National Bureau of Economic Research, Inc.
    11. Cassidy, Michael T., 2020. "A Closer Look: Proximity Boosts Homeless Student Performance in New York City," IZA Discussion Papers 13558, Institute of Labor Economics (IZA).
    12. Cody Cook & Pearl Z. Li & Ariel J. Binder, 2023. "Where to Build Affordable Housing? Evaluating the Tradeoffs of Location," Working Papers 23-62, Center for Economic Studies, U.S. Census Bureau.
    13. Dionissi Aliprantis & Hal Martin & Kristen Tauber, 2020. "What Determines the Success of Housing Mobility Programs?," Working Papers 20-36R, Federal Reserve Bank of Cleveland, revised 19 Oct 2022.
    14. Richard Disney & John Gathergood & Stephen Machin & Matteo Sandi, 2020. "Does homeownership reduce crime? A radical housing reform in Britain," CEP Discussion Papers dp1685, Centre for Economic Performance, LSE.
    15. Blanco, Hector, 2023. "Pecuniary effects of public housing demolitions: Evidence from Chicago," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    16. John C. Haltiwanger & Mark J. Kutzbach & Giordano Palloni & Henry O. Pollakowski & Matthew Staiger & Daniel H. Weinberg, 2020. "The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes," Working Papers 20-39, Center for Economic Studies, U.S. Census Bureau.
    17. David J. Harding & Lisa Sanbonmatsu & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Matthew Sciandra & Jens Ludwig, 2023. "Evaluating Contradictory Experimental and Nonexperimental Estimates of Neighborhood Effects on Economic Outcomes for Adults," Housing Policy Debate, Taylor & Francis Journals, vol. 33(2), pages 453-486, March.
    18. Richard Disney & John Gathergood & Stephen Machin & Matteo Sandi, 2023. "Does Homeownership Reduce Crime? A Radical Housing Reform from the UK," The Economic Journal, Royal Economic Society, vol. 133(655), pages 2640-2675.
    19. Raya, Josep Maria & Torres-Pruñonosa, Jose, 2022. "The importance of administrative data in the evaluation of the incidence of social housing allowance programmes," Evaluation and Program Planning, Elsevier, vol. 94(C).
    20. Ning Zhang, 2022. "In-kind housing transfers and labor supply: a structural approach," Economics Series Working Papers 992, University of Oxford, Department of Economics.

    More about this item

    Keywords

    affordable housing; unemployment; urban labor market access; labor supply; housing policy;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp17359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.