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The Effect on Program Participation of Replacing Current Low-Income Housing Programs with an Entitlement Housing Voucher Program

Author

Listed:
  • Edgar O. Olsen

  • Jeffrey M. Tebbs

Abstract

This paper estimates the effect on participation rates of families of various types of replacing HUD’s largest low-income housing programs with alternative tenure-neutral entitlement housing voucher programs that differ in their taxpayer cost and the relative generosity of the subsidy to households of different types. The estimates of participation in the entitlement programs are based primarily on the five-percent household sample from the 2000 Decennial Census and participation experience in the only entitlement housing assistance programs that have been operated in the United States. HUD’s administrative records provide data on current recipients of low-income housing assistance. The paper explores the sensitivity of the results to the equations used to predict participation. The results indicate that even the entitlement housing voucher program that costs 10 percent less than the current system would serve 50 percent more households in total and many more of each type – white, black, and Hispanic; elderly and nonelderly; families living in metropolitan and nonmetropolitan areas; small, medium, and large families; and households in the first two real income deciles.

Suggested Citation

  • Edgar O. Olsen & Jeffrey M. Tebbs, 2011. "The Effect on Program Participation of Replacing Current Low-Income Housing Programs with an Entitlement Housing Voucher Program," Virginia Economics Online Papers 378, University of Virginia, Department of Economics.
    • Handle: RePEc:vir:virpap:378
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    References listed on IDEAS

    as
    1. John Weicher, 1997. "Privatizing Subsidized Housing," Books, American Enterprise Institute, number 52726, September.
    2. Edgar O. Olsen & Dirk W. Early & Paul E. Carrillo, 2010. "A Panel of Price Indices for Housing, Other Goods, and All Goods for All Areas in the United States 1982-2008," Virginia Economics Online Papers 377, University of Virginia, Department of Economics.
    3. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 887-986, Elsevier.
    4. Edgar O. Olsen, 2003. "Housing Programs for Low-Income Households," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 365-442, National Bureau of Economic Research, Inc.
    5. Jill Khadduri & Raymond J. Struyk, 1982. "Housing vouchers for the poor," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 1(2), pages 196-208.
    6. Katherine A. Kiel & Jeffrey E. Zabel, 1999. "The Accuracy of Owner‐Provided House Values: The 1978–1991 American Housing Survey," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(2), pages 263-298, June.
    7. Daniel H. Weinberg, 1982. "Housing Benefits From the Section 8 Housing Program," Evaluation Review, , vol. 6(1), pages 5-24, February.
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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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