Department of Economics

This study uses a new dataset combining survey and administrative data to investigate the longitudinal effects of subsidized housing on a broad range of outcomes relating to dependency. Given a household's assistance status in 1996, it examines outcomes over the subsequent three years. The aim is to produce an excellent comparison group by matching on the same variables (measured in an earlier period) as the outcomes to be examined. The main findings are that housing subsidy programs reduce individual earnings by roughly 15% and household size by 5-10%. Although these programs are found to affect neighborhood choice, neighborhood poverty rates explain little of the impact on individual earnings.