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Does public housing occupancy increase unemployment?

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Author Info

  • Claire Dujardin

    ()
    (CORE - Center for Operations Research and Econometrics - Université Catholique de Louvain)

  • Florence Goffette-Nagot

    ()
    (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

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

Paper provided by HAL in its series Post-Print with number halshs-00436679.

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Date of creation: 2009
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Publication status: Published, Journal of Economic Geography, 2009, 9, pp. 823-851
Handle: RePEc:hal:journl:halshs-00436679

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00436679/en/
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Keywords: Public housing; unemployment; simultaneous probit models; instrumental variables;

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References

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  1. Ihlanfeldt, Keith R., 1997. "Information on the Spatial Distribution of Job Opportunities within Metropolitan Areas," Journal of Urban Economics, Elsevier, vol. 41(2), pages 218-242, March.
  2. Wasmer, Etienne & Zenou, Yves, 2006. "Equilibrium search unemployment with explicit spatial frictions," Labour Economics, Elsevier, vol. 13(2), pages 143-165, April.
  3. Jakob Roland Munch & Michael Rosholm & Michael Svarer, 2006. "Are Homeowners Really More Unemployed?," Economic Journal, Royal Economic Society, vol. 116(514), pages 991-1013, October.
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  7. Svarer, Michael & Rosholm, Michael & Munch, Jakob Roland, 2005. "Rent control and unemployment duration," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2165-2181, December.
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  14. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," NBER Working Papers 7831, National Bureau of Economic Research, Inc.
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  17. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics.
  18. Fack, Gabrielle, 2006. "Are housing benefit an effective way to redistribute income? Evidence from a natural experiment in France," Labour Economics, Elsevier, vol. 13(6), pages 747-771, December.
  19. 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.
  20. Blundell, Richard & Smith, Richard J., 1994. "Coherency and estimation in simultaneous models with censored or qualitative dependent variables," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 355-373.
  21. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  22. Gunnar Andersson & Karsten Hank & Marit Rønsen & Andres Vikat, 2006. "Gendering family composition: Sex preferences for children and childbearing behavior in the Nordic countries," Demography, Springer, vol. 43(2), pages 255-267, May.
  23. Goux, Dominique & Maurin, Eric, 2003. "The Effects of Overcrowded Housing on Children's Performance at School," CEPR Discussion Papers 3818, C.E.P.R. Discussion Papers.
  24. Harminder Battu & Ada Ma & Euan Phimister, 2008. "Housing Tenure, Job Mobility and Unemployment in the UK," Economic Journal, Royal Economic Society, vol. 118(527), pages 311-328, 03.
  25. Cécile Détang-Dessendre & Florence Goffette-Nagot & Virginie Piguet, 2008. "Life Cycle And Migration To Urban And Rural Areas: Estimation Of A Mixed Logit Model On French Data," Journal of Regional Science, Wiley Blackwell, vol. 48(4), pages 789-824.
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Citations

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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. David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," Working Paper Series WP13-3, Peterson Institute for International Economics.

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