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The Effect of Housing First Programs on Future Homelessness and Socioeconomic Outcomes

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Abstract

Housing First programs provide housing assistance without preconditions for homeless individuals as a platform for rehabilitation. Despite the programs’ increasing popularity, limited evidence exists on their effects on socioeconomic outcomes. Using a novel dataset combining administrative records from multiple public agencies in Los Angeles County and a random case manager assignment design, I estimate that Housing First assistance reduces homelessness and crime, increases income and employment, and does not have a detectable effect on healthcare utilization. Cost-benefit analysis implies that these potential savings offset program costs within 18 months. These findings demonstrate that Housing First can be rehabilitative and cost-effective.

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  • Elior Cohen, 2022. "The Effect of Housing First Programs on Future Homelessness and Socioeconomic Outcomes," Research Working Paper RWP 2022-03, Federal Reserve Bank of Kansas City.
    • Handle: RePEc:fip:fedkrw:93905
    DOI: 10.18651/RWP2022-03
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    Cited by:

    1. Charles Ka Yui LEUNG, 2022. "Housing and Macroeconomics," ISER Discussion Paper 1197, Institute of Social and Economic Research, Osaka University.

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    More about this item

    Keywords

    Homelessness; Housing First; Case managers;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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