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Gone with the Windfall : How do Housing Allowances Affect Student Co-residence ?


  • Anne Laferrere


  • David Le Blanc



Drawing on five cross-sections of the French Housing Survey, this paper examines theeffects on co-residence with their parents of the extension of housing allowances tostudents that took place between 1991 and 1993. Two effects are found. First housingallowances provide an increased opportunity for students to move out of their parents'home. Second, the subsidy affects not just the decision to move out, but location andhousing quality choices. Finally we suggest a model to identify how much of theallowance came as a windfall gain to parents. Defining the windfall gain as being thesubsidies distributed to students who can study locally and whose choice would havebeen to live independently without the subsidy, we find that as much as half of theallowance came as a windfall gain to stude nts and their parents.

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  • Anne Laferrere & David Le Blanc, 2003. "Gone with the Windfall : How do Housing Allowances Affect Student Co-residence ?," Working Papers 2003-36, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2003-36

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    References listed on IDEAS

    1. Feichtinger, Gustav & Hartl, Richard, 1985. "Optimal pricing and production in an inventory model," European Journal of Operational Research, Elsevier, vol. 19(1), pages 45-56, January.
    2. repec:dau:papers:123456789/360 is not listed on IDEAS
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    Cited by:

    1. Guillaume Allègre & Guillaume Dollé, 2013. "Le logement des jeunes et des nouvelles générations, 1978-2006. Plus grand... mais à quel prix !," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(2), pages 421-449.
    2. Olivier Bargain & Karina Doorley, 2009. "Caught in the trap? The disincentive effect of social assistance," Working Papers 200906, School of Economics, University College Dublin.
    3. Mariona Segú & Benjamin Vignolles, 2016. "Taxing Vacant Apartments: Can fiscal policy reduce vacancy?," Working Papers 2016.02, International Network for Economic Research - INFER.
    4. Nuno Martins & Ernesto Villanueva, 2006. "Does limited access to mortgage debt explain why young adults live with their parents?," Working Papers 0628, Banco de España;Working Papers Homepage.
    5. Viola Angelini & Anne Laferrère, 2013. "Parental altruism and nest leaving in Europe: evidence from a retrospective survey," Review of Economics of the Household, Springer, vol. 11(3), pages 393-420, September.
    6. Essi Eerola & Teemu Lyytikäinen, 2017. "Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme," SERC Discussion Papers 0220, Spatial Economics Research Centre, LSE.
    7. Gabrielle Fack, 2005. "Pourquoi les ménages pauvres paient-ils des loyers de plus en plus élevés ? [L’incidence des aides au logement en France (1973-2002)]," Économie et Statistique, Programme National Persée, vol. 381(1), pages 17-40.
    8. Deborah A. Cobb-Clark, 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(2), pages 160-176, June.
    9. repec:dau:papers:123456789/3800 is not listed on IDEAS

    More about this item

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy


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