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Examining the roots of homelessness: The impact of regional housing market conditions and the social environment on homelessness in North Rhine-Westphalia, Germany

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  • Kröll, Alexandra
  • Farhauer, Oliver
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    Abstract

    "Despite large-scale governmental efforts to combat homelessness, homelessness rates can only be reduced but not eliminated completely by the measures usually applied. Hence, there is an obvious need to investigate additional factors which contribute to homelessness and gain insights on how to further reduce homelessness. To begin with, the relationship between the conditions prevailing on the housing market and homelessness levels is made out with the help of a theoretical model. From this model, a critical income ensuring positive housing consumption can be deduced; individuals with an income below this critical threshold end up homeless. The empirical analysis draws on a panel data set comprising information on all districts (Kreise) of North Rhine-Westphalia from 2004-2009. The regression analysis underpins the theoretical results: High (net market) rents as well as low vacancy rates among small flats lead to rising homelessness. Homelessness also increases when the share of long-term unemployed and of those with a monthly income below EURO 700 is higher, since this makes it more difficult to reach the critical income needed to rent a flat. Finally, some policy conclusions resulting from the analysis are pointed out." (Author's abstract, IAB-Doku) ((en))

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    Bibliographic Info

    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201213.

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    Length: 23 pages
    Date of creation: 09 May 2012
    Date of revision:
    Handle: RePEc:iab:iabdpa:201213

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    Keywords: Wohnungslosigkeit; Obdachlosigkeit - Ursache; Langzeitarbeitslose; Einkommenshöhe; Armut; Wohnverhalten; Wohnkosten; Existenzminimum; Nordrhein-Westfalen; Bundesrepublik Deutschland;

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    References

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    1. Mansur, Erin & Quigley, John M. & Raphael, Steven & Smolensky, Eugene, 2003. "Examining Policies to Reduce Homelessness Using a General Equilibrium Model of the Housing Market," Berkeley Program on Housing and Urban Policy, Working Paper Series qt11j6s62t, Berkeley Program on Housing and Urban Policy.
    2. John M. Quigley & Steven Raphael & Eugene Smolensky, 2001. "Homeless In America, Homeless In California," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 37-51, February.
    3. Honig, Marjorie & Filer, Randall K, 1993. "Causes of Intercity Variation in Homelessness," American Economic Review, American Economic Association, vol. 83(1), pages 248-55, March.
    4. Poeschel, Friedrich, 2012. "The time trend in the matching function," IAB Discussion Paper 201203, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Schmerer, Hans-Jörg, 2012. "Foreign direct investment and search unemployment : Theory and evidence," IAB Discussion Paper 201204, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Early, Dirk W., 1999. "A Microeconomic Analysis of Homelessness: An Empirical Investigation Using Choice-Based Sampling," Journal of Housing Economics, Elsevier, vol. 8(4), pages 312-327, December.
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