A Journey Home: What Drives How Long People are Homeless?

41 Pages Posted: 16 Oct 2014

See all articles by Deborah A. Cobb-Clark

Deborah A. Cobb-Clark

School of Economics, University of Sydney; IZA Institute of Labor Economics

Nicolas Herault

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Rosanna Scutella

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Yi-Ping Tseng

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2014

Abstract

This paper uses survival analysis to model exits over time from two alternative notions of homelessness. We are unique in being able to account for time-invariant, unobserved heterogeneity. We find that duration dependence has an inverted U-shape with exit rates initially increasing (indicating positive duration dependence) and then falling. Like previous researchers, we find results consistent with negative duration dependence in models which ignore unobserved heterogeneity. Exit rates out of homelessness fall with age and with the education level of mothers. Women are more likely than men to exit homelessness when it is broadly conceived, but appear to be less likely to exit when it is narrowly defined. Finally, higher paternal education and exemptions from welfare-related activity requirements due to either mental or physical health conditions are all associated with higher exit rates.

Keywords: Homelessness, housing insecurity, survival analysis, duration dependence

JEL Classification: I3, R2, C4

Suggested Citation

Cobb-Clark, Deborah A. and Herault, Nicolas and Scutella, Rosanna and Tseng, Yi-Ping, A Journey Home: What Drives How Long People are Homeless? (September 1, 2014). Melbourne Institute Working Paper No. 20/14. Available at SSRN: https://ssrn.com/abstract=2509646 or http://dx.doi.org/10.2139/ssrn.2509646

Deborah A. Cobb-Clark

School of Economics, University of Sydney ( email )

606 Social Sciences Bldg. (A02)
The University of Sydney
Sydney, NSW 2006
Australia
61435061387 (Phone)

IZA Institute of Labor Economics

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

Nicolas Herault (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

HOME PAGE: http://www.findanexpert.unimelb.edu.au/researcher/person125238.html

Rosanna Scutella

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+61 3 8344 8175 (Phone)
+61 3 8344 5630 (Fax)

HOME PAGE: http://wff1.ecom.unimelb.edu.au/iaesrwww/people/rscutella/

Yi-Ping Tseng

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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