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Childhood Housing And Adult Earnings: A Between-Siblings Analysis Of Housing Vouchers And Public Housing

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  • Fredrik Andersson
  • John C. Haltiwanger
  • Mark J. Kutzbach
  • Giordano Palloni
  • Henry O. Pollakowski
  • Daniel H. Weinberg

Abstract

Research on effects of living in voucher-assisted and public housing to date has largely focused on short-term outcomes and data limitations and challenges of identification have been an obstacle to conclusive results. In contrast, this paper assesses effects of children’s housing on their later employment and earnings, uses national longitudinal data, and makes use of within-household variation to mitigate selection issues. We combine several national datasets on housing assistance, teenagers and their households, and the subsequent earnings and employment outcomes, such that we are able to follow1.8 million children aged 13-18 in 2000 in over 800,000 households within many different assisted and unassisted housing settings, controlling for neighborhood conditions, and examine their labor market outcomes for the 2008-2010 period. By focusing on within-family variation in subsidy treatment, we remove a substantial source of unobserved heterogeneity affecting both a child’s selection into housing and their later outcomes. OLS estimates show a substantial negative effect of housing subsidies on earnings and employment outcomes. However, using within-household variation to control for selection issues attenuates these effects, and results in positive effects for some demographic groups. The large sample size allows us to study to what extent results vary by gender and race/ethnicity, and we find strong evidence of heterogeneous effects. Children in Black households who have lived in voucher-supported housing and public housing often benefit in terms of positive subsequent economic outcomes. Girls raised in Black households derive a considerable positive effect on later earnings from having lived in voucher-supported housing, and a somewhat lesser effect from having lived in public housing. Boys raised in Black households fare relatively worse than girls; in contrast, girls in White households tend to have relatively worse outcomes than boys.

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File URL: ftp://ftp2.census.gov/ces/wp/2013/CES-WP-13-48.pdf
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-48.

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Length: 42 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:cen:wpaper:13-48

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  1. John Abowd & John Haltiwanger & Ron Jarmin & Julia Lane & Paul Lengermann & Kristin McCue & Kevin McKinney & Kristin Sandusky, 2002. "The Relation among Human Capital, Productivity and Market Value: Building Up from Micro Evidence," Longitudinal Employer-Household Dynamics Technical Papers 2002-14, Center for Economic Studies, U.S. Census Bureau.
  2. 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.
  3. Janet Currie & Mark Stabile & Phongsack Manivong & Leslie L. Roos, 2010. "Child Health and Young Adult Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
  4. John M. Abowd & John C. Haltiwanger & Julia I. Lane, 2004. "Integrated Longitudinal Employee-Employer Data for the United States," Longitudinal Employer-Household Dynamics Technical Papers 2004-02, Center for Economic Studies, U.S. Census Bureau.
  5. repec:cen:wpaper:11-30 is not listed on IDEAS
  6. Oreopoulos, Philip, 2007. "The Long-Run Consequences of Living in a Poor Neighborhood," Berkeley Program on Housing and Urban Policy, Working Paper Series qt9np9p7m5, Berkeley Program on Housing and Urban Policy.
  7. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
  8. 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.
  9. Janet Currie & Aaron Yelowitz, 1997. "Are Public Housing Projects Good for Kids?," NBER Working Papers 6305, National Bureau of Economic Research, Inc.
  10. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
  11. Janet Currie & Reed Walker, 2011. "Traffic Congestion and Infant Health: Evidence from E-ZPass," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 65-90, January.
  12. Fredrik Andersson & Matthew Freedman & John Haltiwanger & Julia Lane & Kathryn Shaw, 2009. "Reaching for the Stars: Who Pays for Talent in Innovative Industries?," Economic Journal, Royal Economic Society, vol. 119(538), pages F308-F332, 06.
  13. Lynn M. Fisher & Henry O. Pollakowski & Jeffrey Zabel, 2009. "Amenity-Based Housing Affordability Indexes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(4), pages 705-746.
  14. Brian A. Jacob, 2004. "Public Housing, Housing Vouchers, and Student Achievement: Evidence from Public Housing Demolitions in Chicago," American Economic Review, American Economic Association, vol. 94(1), pages 233-258, March.
  15. Newman, Sandra & Harkness, Joseph, 2000. "Assisted Housing and the Educational Attainment of Children," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 40-63, March.
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