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The consequences of the Swedish rent control system on labor income: Evidence from a randomized apartment lottery

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  • Enström Öst, Cecilia
  • Johansson, Per

Abstract

Using a unique randomized rental apartment lottery in Stockholm metropolitan statistical area, this paper analyses behavioral effects on individuals receiving a rent-controlled contract in the Swedish rent control program. The result shows that receiving a rent-controlled contract reduces the annual labor income by 13 to 20 percent and employment by 8 to 13 percent. To some extent, these effects can be explained by an increased propensity to enter higher education.

Suggested Citation

  • Enström Öst, Cecilia & Johansson, Per, 2023. "The consequences of the Swedish rent control system on labor income: Evidence from a randomized apartment lottery," Journal of Public Economics, Elsevier, vol. 221(C).
    • Handle: RePEc:eee:pubeco:v:221:y:2023:i:c:s0047272723000464
    DOI: 10.1016/j.jpubeco.2023.104864
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    References listed on IDEAS

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