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- Title
The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery.
- Authors
Jacob, Brian A; Ludwig, Jens
- Abstract
This study estimates the effects of means-tested housing programs on labor supply using data from a randomized housing voucher wait-list lottery in Chicago. Economic theory is ambiguous about the expected sign of any labor supply response. We find that among working-age, able-bodied adults, housing voucher use reduces labor force participation by around 4 percentage points (6 percent) and quarterly earnings by $329 (10 percent), and increases Temporary Assistance for Needy Families program participation by around 2 percentage points (15 percent). We find no evidence that the housing-specific mechanisms hypothesized to promote work, such as neighborhood quality or residential stability, are important empirically. (JEL I38, J22, R23, R38)
- Subjects
CHICAGO (Ill.); ILLINOIS; EMPLOYMENT; HOUSING subsidies; PUBLIC housing; PUBLIC welfare policy; RENT subsidies; LABOR; NEIGHBORHOODS; TEMPORARY Assistance for Needy Families (Program)
- Publication
American Economic Review, 2012, Vol 102, Issue 1, p272
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.102.1.272