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Does public housing occupancy increase unemployment?

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  • Claire Dujardin
  • Florence Goffette-Nagot

Abstract

This paper shows that living in public housing has no effect on the probability of being unemployed in France, once we account for the endogeneity of public housing. We estimate a simultaneous probit model of unemployment and public housing. On a first sample for Lyon, we instrument public housing with the gender composition of children. On a second national sample, the instrument is the city-level share of public housing. Both samples yield the same conclusion, which we justify by showing that a small amount of selection on unobservables is enough to eliminate the positive effect found in “naive” estimates.

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 9 (2009)
Issue (Month): 6 (November)
Pages: 823-851

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Handle: RePEc:oup:jecgeo:v:9:y:2009:i:6:p:823-851

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Cited by:
  1. Florence Goffette-Nagot & Modibo Sidibé, 2013. "Housing wealth accumulation : The role of public housing," Working Papers 1343, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  2. DUJARDIN, Claire & GOFFETTE-NAGOT, Florence, 2009. "Neighborhood effects on unemployment ? A test à la Altonji," CORE Discussion Papers 2009084, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Blanchflower, David G. & Oswald, Andrew J., 2013. "Does High Home-Ownership Impair the Labor Market?," IZA Discussion Papers 7640, Institute for the Study of Labor (IZA).

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