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The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery

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  • Brian A. Jacob
  • Jens Ludwig

Abstract

This study estimates the effects of means-tested housing programs on labor supply using data from a randomized housing voucher wait-list lottery in Chicago. Evidence for the net effects of housing programs on labor supply is central to a wide range of policy decisions about how to provide housing assistance to the poor. Economic theory is ambiguous about the expected sign of any labor supply response. We find that among working-age, able-bodied adults, housing voucher use reduces quarterly labor force participation rates by 4 percentage points (6 percent of the control complier mean) and quarterly earnings by $285 (10 percent), and increases social program participation rates by 2 percentage points (16 percent of the control mean). These impacts are toward the lower end of the range of recent estimates from other studies of housing programs, but nonetheless do still imply that housing vouchers reduce labor supply.

Suggested Citation

  • Brian A. Jacob & Jens Ludwig, 2008. "The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery," NBER Working Papers 14570, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14570
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    References listed on IDEAS

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    1. Brian A. Jacob, 2004. "Public Housing, Housing Vouchers, and Student Achievement: Evidence from Public Housing Demolitions in Chicago," American Economic Review, American Economic Association, vol. 94(1), pages 233-258, March.
    2. Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, March.
    3. Reeder, William J., 1985. "The benefits and costs of the section 8 existing housing program," Journal of Public Economics, Elsevier, vol. 26(3), pages 349-377, April.
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    Cited by:

    1. Raj Chetty & Adam Guren & Day Manoli & Andrea Weber, 2013. "Does Indivisible Labor Explain the Difference between Micro and Macro Elasticities? A Meta-Analysis of Extensive Margin Elasticities," NBER Macroeconomics Annual, University of Chicago Press, vol. 27(1), pages 1-56.
    2. Raj Chetty, 2012. "Bounds on Elasticities With Optimization Frictions: A Synthesis of Micro and Macro Evidence on Labor Supply," Econometrica, Econometric Society, vol. 80(3), pages 969-1018, May.
    3. Barbara A. Haley, 2017. "Does Stigma Inhibit Labor Force Participation of Young Millennials Who Receive Housing Assistance?," Poverty & Public Policy, John Wiley & Sons, vol. 9(1), pages 71-95, March.
    4. Carlson, Deven & Haveman, Robert & Kaplan, Tom & Wolfe, Barbara, 2012. "Long-term earnings and employment effects of housing voucher receipt," Journal of Urban Economics, Elsevier, vol. 71(1), pages 128-150.
    5. Barbara A. Haley & Aref N. Dajani, 2015. "Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients," Poverty & Public Policy, John Wiley & Sons, vol. 7(4), pages 307-335, December.
    6. Sara B. Heller & Brian A. Jacob & Jens Ludwig, 2010. "Family Income, Neighborhood Poverty, and Crime," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 419-459, National Bureau of Economic Research, Inc.
    7. Robert Haveman & Barbara Wolfe, 2012. "Long-Term Effects of Public Low-Income Housing Vouchers: Work, Neighborhood, Family Composition and Childcare Usage," CEPR Discussion Papers 667, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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