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Long-term earnings and employment effects of housing voucher receipt

  • Carlson, Deven
  • Haveman, Robert
  • Kaplan, Tom
  • Wolfe, Barbara

Using a propensity score matching approach coupled with difference-in-differences regression analysis, we estimate the effect of housing voucher receipt on the employment and earnings of a large longitudinal sample of low-income families for 6years following voucher receipt. Our results indicate that voucher receipt has little effect on employment, but a negative effect on earnings. The negative earnings effect is largest in the years immediately following initial receipt, and fades out over time. In addition, we find that the pattern of recipient earnings responses to voucher receipt differs substantially across demographic subgroups. Several robustness tests are run to support the reliability of our findings. We discuss the implications of our findings for research and policy.

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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 1 ()
Pages: 128-150

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Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:128-150
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Michael Lechner, 2005. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Labor and Demography 0505006, EconWPA.
  2. Rajeev H. Dehejia & Sadek Wahba, 1998. "Propensity Score Matching Methods for Non-experimental Causal Studies," NBER Working Papers 6829, National Bureau of Economic Research, Inc.
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  9. Maureen A. Pirog & Anne L. Buffardi & Colleen K. Chrisinger & Pradeep Singh & John Briney, 2009. "Are the alternatives to randomized assignment nearly as good? Statistical corrections to nonrandomized evaluations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(1), pages 169-172.
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  11. Sinai, Todd & Waldfogel, Joel, 2005. "Do low-income housing subsidies increase the occupied housing stock?," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2137-2164, December.
  12. 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.
  13. 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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  15. Shroder, Mark, 2002. "Locational Constraint, Housing Counseling, and Successful Lease-up in a Randomized Housing Voucher Experiment," Journal of Urban Economics, Elsevier, vol. 51(2), pages 315-338, March.
  16. Dyke, Andrew & Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth, 2005. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," IZA Discussion Papers 1520, Institute for the Study of Labor (IZA).
  17. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
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  20. repec:pri:indrel:dsp01cr56n0997 is not listed on IDEAS
  21. Juan Jose Diaz & Sudhanshu Handa, 2006. "An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator: Evidence from Mexico’s PROGRESA Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
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