Long-Term Effects of Public Low-Income Housing Vouchers: Work, Neighborhood, Family Composition and Childcare Usage

Using a propensity score matching approach coupled with difference-in-differences regression analysis, we estimate the effect of receiving a low-income housing voucher on the employment and earnings, mobility, neighborhood quality, household/family composition and childcare utilization of a large longitudinal sample of low-income families in the U.S. We observe these effects over six years 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. Full-sample results show voucher receipt to have little effect on neighborhood quality in the short-term, but some positive long-term effects. We also find that voucher receipt is tied to a higher probability of change in household/family composition in the year of voucher receipt, but greater stability in subsequent years. The results of our propensity score matching procedure show voucher receipt to be tied to a greater take-up of public child care subsidies. Several robustness tests are run to support the reliability of our findings. We discuss the implications of our findings for research and policy.