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The Dynamics of Housing Allowance Claims in Sweden: A Discrete Time-Hazard Analysis

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  • Jie Chen
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Abstract

This paper analyses the dynamics of the duration of housing allowance claims in Sweden during the period 1991 to 2002. The central concern in this paper is whether the Swedish housing allowance system creates dependence on welfare. Using longitudinal data from Swedish micro-database LINDA, this paper found that there is no evidence of negative duration dependence arising from the duration of housing allowance claims. This finding is consistent across different model specifications and various controls of the heterogeneity issue. Hence we come to the conclusion that a recipient's exit rate from the system does not decrease over the duration claim. This paper also shows that the demographic characteristics, educational background, labour market status and economic contextual conditions play important roles in determining recipients' conditional probability of exiting from the housing allowance system. However, there are substantial variations in the factors' impact across different household types.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Journal of Housing Policy.

Volume (Year): 6 (2006)
Issue (Month): 1 ()
Pages: 1-29

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Handle: RePEc:taf:intjhp:v:6:y:2006:i:1:p:1-29

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Keywords: Housing allowance; discrete time hazard; duration dependence;

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Cited by:
  1. Shroder, Mark, 2010. "Housing Subsidies and Work Incentives," MPRA Paper 26019, University Library of Munich, Germany.
  2. Hallberg, Daniel, 2006. "Cross-national differences in income poverty among Europe´s 50+," Working Paper Series 2006:14, Uppsala University, Department of Economics.
  3. Per Engstrom & Bertil Holmlund, 2009. "Tax evasion and self-employment in a high-tax country: evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2419-2430.
  4. Ågren, Martin, 2006. "Prospect Theory and Higher Moments," Working Paper Series 2006:24, Uppsala University, Department of Economics.
  5. Johansson, Fredrik & Klevmarken, Anders, 2006. "Explaining the size and nature of response in a survey on health status and economic standard," Working Paper Series 2006:2, Uppsala University, Department of Economics.

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