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Housing Assistance and Eviction Prevention During Compound Crises: Evidence from the COVID-19 Pandemic

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  • Dikgang, Johane
  • Magambo, Isaiah
  • Amadu, Festus O.
  • Magnier, Alexandre

Abstract

During economic downturns, urban policymakers must evaluate whether housing aid effectively prevents evictions. Analyzing 207,203 observations from the Understanding America Study during COVID-19 and using recursive bivariate probit models with instrumental variables, we find that housing aid is linked to a 4.3% reduced likelihood of eviction. For households with access to credit, this reduction increases to 6.2%. An inverted-U trend appears: households with one to two credit sources experience over 39% reductions, while those with three or more credit sources see smaller effects of approximately 4.1%. This trend indicates financial stability rather than overleverage; more credit sources are associated with higher creditworthiness and less reliance on aid. These findings were consistent across the different estimation methods. This implies that combining housing assistance with financial inclusion strategies that emphasize credit quality over quantity could improve eviction prevention during economic downturns.

Suggested Citation

  • Dikgang, Johane & Magambo, Isaiah & Amadu, Festus O. & Magnier, Alexandre, 2026. "Housing Assistance and Eviction Prevention During Compound Crises: Evidence from the COVID-19 Pandemic," GLO Discussion Paper Series 1735 [rev.], Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1735r
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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