The Incidence of Housing Voucher Generosity
57 Pages Posted: 24 Apr 2013 Last revised: 1 Jul 2016
Date Written: June 30, 2016
Most housing voucher recipients live in low-quality neighborhoods. We study how changes in voucher generosity affect neighborhood poverty, unit-quality and rents using administrative data. We examine a policy making vouchers more generous across a metro area. This policy had no impact on neighborhood poverty, little impact on observed quality, and increased rents. A second policy, which indexed rent ceilings to neighborhood rents, led voucher recipients to move to higher quality neighborhoods with lower crime, poverty and unemployment. These results are consistent with a model where the first policy acts as an income effect and the second as a substitution effect.
Keywords: Incidence, Vouchers, Housing, Neighborhoods
JEL Classification: H22, H53, R21, R31
Suggested Citation: Suggested Citation