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Public Housing and Labor Supply

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  • Janet Currie
  • Aaron S. Yelowitz

Abstract

The federal government spent more than $19 billion on subsidized housing programs for the poor in Fiscal Year 1992. Of this amount, roughly two-thirds was spent on Section 8 housing vouchers and one-third on public housing projects. Although spending on these programs is nearly equal to Aid to Families with Dependent Children (AFDC), Supplemental Security Income, or Food Stamp expenditure, there is comparatively little empirical evidence on how housing programs affect economic behavior. The goal of this study is to answer two sets of questions: How do the income eligibility rules, marginal tax rates, and subsidies from the housing program affect the work behavior of recipients? We consider whether the fact that some housing benefits are lost in their entirety when income goes beyond the eligibility level (known as the public housing notch) distorts work behavior. How does public housing interact with other welfare programs such as AFDC, Medicaid, SSI, and Food Stamps? The STATA programs and data used in this study may be obtained from the authors; email requests to: yelowitz@ucla.edu.

Suggested Citation

  • Janet Currie & Aaron S. Yelowitz, 1998. "Public Housing and Labor Supply," JCPR Working Papers 52, Northwestern University/University of Chicago Joint Center for Poverty Research.
  • Handle: RePEc:wop:jopovw:52
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    3. Rebecca M. Blank, 1989. "The Effect of Medical Need and Medicaid on AFDC Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 54-87.
    4. Moffitt, Robert & Wolfe, Barbara L, 1992. "The Effect of the Medicaid Program on Welfare Participation and Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 615-626, November.
    5. B. Wolfe & S. C. Hill, "undated". "The effect of health on the work effort of low-income single mothers," Institute for Research on Poverty Discussion Papers 979-92, University of Wisconsin Institute for Research on Poverty.
    6. Aaron S. Yelowitz, 1995. "The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 909-939.
    7. Fraker, Thomas & Moffitt, Robert, 1988. "The effect of food stamps on labor supply : A bivariate selection model," Journal of Public Economics, Elsevier, vol. 35(1), pages 25-56, February.
    8. A. S. Yelowitz, "undated". "Did recent medicaid reforms cause the caseload explosion in the food stamp program?," Institute for Research on Poverty Discussion Papers 1109-96, University of Wisconsin Institute for Research on Poverty.
    9. Currie, Janet & Yelowitz, Aaron, 2000. "Are public housing projects good for kids?," Journal of Public Economics, Elsevier, vol. 75(1), pages 99-124, January.
    10. Barbara L. Wolfe & Steven C. Hill, 1995. "The Effect of Health on the Work Effort of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 42-62.
    11. Paul A. Hagstrom, 1996. "The Food Stamp Participation and Labor Supply of Married Couples: An Empirical Analysis of Joint Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 383-403.
    12. Rebecca M. Blank & Patricia Ruggles, 1996. "When Do Women Use Aid to Families with Dependent Children and Food Stamps? The Dynamics of Eligibility Versus Participation," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 57-89.
    13. Yelowitz, Aaron S, 2000. "Using the Medicare Buy-In Program to Estimate the Effect of Medicaid on SSI Participation," Economic Inquiry, Western Economic Association International, vol. 38(3), pages 419-441, July.
    14. Anne E. Winkler, 1991. "The Incentive Effects of Medicaid on Women's Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 308-337.
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    Cited by:

    1. Harkness, Joseph & Newman, Sandra, 2003. "The interactive effects of housing assistance and food stamps on food spending," Journal of Housing Economics, Elsevier, vol. 12(3), pages 224-249, September.
    2. Goffette-Nagot, Florence & Sidibé, Modibo, 2016. "Housing wealth accumulation: The role of public housing," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 12-22.
    3. Joseph Harkness & Sandra J. Newman, 2002. "The Interactive Effects of Housing Assistance and Food Stamps," JCPR Working Papers 272, Northwestern University/University of Chicago Joint Center for Poverty Research.
    4. Deirdre Oakley & Erin Ruel & Lesley Reid, 2013. "Atlanta's Last Demolitions and Relocations: The Relationship Between Neighborhood Characteristics and Resident Satisfaction," Housing Studies, Taylor & Francis Journals, vol. 28(2), pages 205-234, March.
    5. David A. Reingold & Gregg G. Van Ryzin & Michelle Ronda, 2001. "Does Urban Public Housing Diminish the Social Capital and Labor Force Activity of Its Tenants?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(3), pages 485-504.

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