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Does public housing occupancy increase unemployment?

  • Claire Dujardin


    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain)

  • Florence Goffette-Nagot


    (GATE - Groupe d'analyse et de théorie économique - CNRS - UL2 - Université Lumière - Lyon 2 - 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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Paper provided by HAL in its series Post-Print with number halshs-00436679.

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Date of creation: 2009
Date of revision:
Publication status: Published in Journal of Economic Geography, Oxford University Press (OUP): Policy F, 2009, 9, pp. 823-851. <10.1093/jeg/lbp002>
Handle: RePEc:hal:journl:halshs-00436679
DOI: 10.1093/jeg/lbp002
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