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The Negative and Persistent Impact of Social Housing on Employment

Author

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  • Stéphane Gregoir
  • Tristan-Pierre Maury

Abstract

We assess whether and how much social housing may contribute to the dynamics of unemployment. We propose an original model on the joint dynamics of individual home and labor market positions estimated with UK panel data that allows for idiosyncratic heterogeneity and state dependence. Our results provide significant evidence of cross-causality effects between home tenure and the labor market: we find a higher transition rate into social housing for unemployed or inactive household heads, and a lower probability of getting employed for social tenants ceteris paribus. We compare two groups of household heads living in the private sector: the employed and the jobseekers. We estimate their probability of being employed in the medium term. The indirect role of transitions to social housing appears quantitatively large and significant. Indeed, almost 20% of the gap in employment probability in the medium term between the two groups can be attributed to a higher likelihood of living in the social sector for the jobseekers.

Suggested Citation

  • Stéphane Gregoir & Tristan-Pierre Maury, 2018. "The Negative and Persistent Impact of Social Housing on Employment," Annals of Economics and Statistics, GENES, issue 130, pages 133-166.
  • Handle: RePEc:adr:anecst:y:2018:i:130:p:133-166
    DOI: 10.15609/annaeconstat2009.130.0133
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    File URL: https://www.jstor.org/stable/10.15609/annaeconstat2009.130.0133
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    More about this item

    Keywords

    Social Housing; Unemployment; Path Analysis; Multivariate Dynamic Logit.;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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