Economic incentives, housing allowance, and housing consumption: An unintended consequence of a shift in housing policy
This study investigated whether an imposed dwelling size constraint in the Swedish housing allowance system induced recipients to move into smaller apartments and overcrowded conditions, i.e., an unintended consequence of a housing policy shift. To address this matter, this paper exploits a quasi-experimental dimension of the imposed dwelling size limit by applying the difference-in-difference estimator. Data for this study were extracted from the Swedish National Insurance Board’s database on housing allowance recipients, which comprises data previously unavailable for research. The estimation results suggest that this policy shift induced single-parent households living in rental housing to decrease their consumption of interior space, yielding a statistically significant increase in moves into overcrowded conditions, an effect that is even greater for single parents with one child than for those with two or more children. This effect runs directly counter to two long-term stated goals of the Swedish housing allowance system: (1) to induce households to move into better housing, thereby increasing their housing consumption, and (2) to prevent families with children from living in overcrowded conditions.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruce D. Meyer, 1988.
"Unemployment Insurance And Unemployment Spells,"
NBER Working Papers
2546, National Bureau of Economic Research, Inc.
- Edgar O. Olsen, 2003.
"Housing Programs for Low-Income Households,"
in: Means-Tested Transfer Programs in the United States, pages 365-442
National Bureau of Economic Research, Inc.
- Meyer, Bruce D, 1995.
"Natural and Quasi-experiments in Economics,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 13(2), pages 151-61, April.
- Harvey S. Rosen, 1981.
"Housing Behavior and the Experimental Housing Allowance Program: What Have We Learned?,"
NBER Working Papers
0657, National Bureau of Economic Research, Inc.
- Harvey S. Rosen, 1985. "Housing Behavior and the Experimental Housing-Allowance Program: What Have We Learned?," NBER Chapters, in: Social Experimentation, pages 55-94 National Bureau of Economic Research, Inc.
- Fallis, George, 1990. "The optimal design of housing allowances," Journal of Urban Economics, Elsevier, vol. 27(3), pages 381-397, May.
- 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.
- Bhat, Chandra R., 1996. "A hazard-based duration model of shopping activity with nonparametric baseline specification and nonparametric control for unobserved heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 189-207, June.
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
- Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 1-19.
- Emmanuel Saez, 1999.
"Do Taxpayers Bunch at Kink Points?,"
NBER Working Papers
7366, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:23:y:2014:i:c:p:17-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.