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Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing

41 Pages Posted: 28 Sep 2013  

Fredrik Andersson

Office of the Comptroller of the Currency (OCC)

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Mark J. Kutzbach

Government of the United States of America - Bureau of the Census; University of California, Irvine - Department of Economics

Giordano Palloni

Government of the United States of America - Bureau of the Census

Henry Pollakowski

Harvard University - Graduate School of Design

Daniel H. Weinberg

DHW Consulting

Multiple version iconThere are 3 versions of this paper

Date Written: September 1, 2013

Abstract

Research on effects of living in voucher-assisted and public housing to date has largely focused on short-term outcomes, while data limitations and challenges of identification have been an obstacle to conclusive results. In contrast, this paper assesses effects of children’s housing on their later employment and earnings, uses national longitudinal data, and makes use of withinhousehold variation to mitigate selection issues. We combine several national datasets on housing assistance, teenagers and their households, and the subsequent earnings and employment outcomes, such that we are able to follow1.8 million children aged 13-18 in 2000 in over 800,000 households within many different assisted and unassisted housing settings, controlling for neighborhood conditions, and examine their labor market outcomes for the 2008-2010 period. By focusing on within-family variation in subsidy treatment, we remove a substantial source of unobserved heterogeneity affecting both a child’s selection into housing and their later outcomes. OLS estimates show a substantial negative effect of housing subsidies on earnings and employment outcomes. However, using within-household variation to control for selection issues attenuates these effects, and results in positive effects for some demographic groups. The large sample size allows us to study to what extent results vary by gender and race/ethnicity, and we find strong evidence of heterogeneous effects. Children in Black households who have lived in voucher-supported housing and public housing often benefit in terms of positive subsequent economic outcomes. Girls raised in Black households derive a considerable positive effect on later earnings from having lived in voucher-supported housing, and a somewhat lesser effect from having lived in public housing. Boys raised in Black households fare relatively worse than girls; in contrast, girls in White households tend to have relatively worse outcomes than boys.

Suggested Citation

Andersson, Fredrik and Haltiwanger, John and Kutzbach, Mark J. and Palloni, Giordano and Pollakowski, Henry and Weinberg, Daniel H., Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing (September 1, 2013). US Census Bureau Center for Economic Studies Paper No. CES-WP-13-48. Available at SSRN: https://ssrn.com/abstract=2330982 or http://dx.doi.org/10.2139/ssrn.2330982

Per Fredrik Daniel Andersson (Contact Author)

Office of the Comptroller of the Currency (OCC) ( email )

400 7th St. SW
Washington, DC 20219-0001
United States
202-649-5528 (Phone)
571-465-3246 (Fax)

John C. Haltiwanger

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Mark J. Kutzbach

Government of the United States of America - Bureau of the Census ( email )

4600 Silver Hill Road
Washington, DC 20233
United States

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States

Giordano Palloni

Government of the United States of America - Bureau of the Census ( email )

4600 Silver Hill Road
Washington, DC 20233-9100
United States

Henry O. Pollakowski

Harvard University - Graduate School of Design ( email )

48 Quincy Street
Gund Hall
Cambridge, MA 02138
United States

Daniel H. Weinberg

DHW Consulting ( email )

No Address Available

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