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Does public housing occupancy increase unemployment?

  • Claire Dujardin

    ()

    (CORE - Center for Operations Research and Econometrics - Université Catholique de Louvain)

  • Florence Goffette-Nagot

    ()

    (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

This paper shows that living in public housing has no effect on the probability of being unemployed in France, once we account for the endogeneity of public housing. We estimate a simultaneous probit model of unemployment and public housing. On a first sample for Lyon, we instrument public housing with the gender composition of children. On a second national sample, the instrument is the city-level share of public housing. Both samples yield the same conclusion, which we justify by showing that a small amount of selection on unobservables is enough to eliminate the positive effect found in “naive” estimates.

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File URL: http://halshs.archives-ouvertes.fr/docs/00/43/66/79/PDF/DujardinGoffette_JEG20098_VAuteurs-1.pdf
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Paper provided by HAL in its series Post-Print with number halshs-00436679.

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Date of creation: 2009
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Publication status: Published, Journal of Economic Geography, 2009, 9, pp. 823-851
Handle: RePEc:hal:journl:halshs-00436679
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00436679/en/
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  19. Gunnar Andersson & Karsten Hank & Marit Rønsen & Andres Vikat, 2006. "Gendering family composition: Sex preferences for children and childbearing behavior in the Nordic countries," Demography, Springer, vol. 43(2), pages 255-267, May.
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  23. Paul Flatau & Matt Forbes & Patric H. Hendershott, 2003. "Homeownership and Unemployment: The Roles of Leverage and Public Housing," NBER Working Papers 10021, National Bureau of Economic Research, Inc.
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  25. Blundell, Richard & Smith, Richard J., 1994. "Coherency and estimation in simultaneous models with censored or qualitative dependent variables," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 355-373.
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