The Effect of a Metropolitan Area's Price of Housing on Child and Young Adult Outcomes

41 Pages Posted: 26 Jan 2016

See all articles by David M. Blau

David M. Blau

Ohio State University (OSU) - Economics

Donald R. Haurin

Ohio State University (OSU) - Economics

Date Written: January 16, 2016

Abstract

There have been unprecedented swings in the real price of owner-occupied housing in the past two decades. These price changes may have affected household wellbeing in a number of ways, including through their effects on child development. However, there has been little research on the impact of the price of housing on child development, and no research on the longer run effects of the variations in the price of housing experienced during childhood. We merge longitudinal data on child and young adult outcomes with information on local house prices and market rents, and analyze both the short and long term effects of the price of housing experienced during childhood. The results indicate that the variations in a metropolitan area’s price of owner-occupied housing has a small negative effect on children’s mathematical achievement, but no consistent impact on reading achievement, behavior problems, or a child’s body-mass index. A higher average price of housing experienced during childhood has a negative effect on the wage rate of young adults, consistent with the negative effect on childhood mathematical achievement. However, the main finding is that the fluctuations in the price of housing in the past two decades have little impact on children.

Keywords: House Prices, Child Cognition, Young Adult Outcomes, Homeownership, Housing

JEL Classification: R2, J13, D13

Suggested Citation

Blau, David M. and Haurin, Donald R., The Effect of a Metropolitan Area's Price of Housing on Child and Young Adult Outcomes (January 16, 2016). Available at SSRN: https://ssrn.com/abstract=2721512 or http://dx.doi.org/10.2139/ssrn.2721512

David M. Blau

Ohio State University (OSU) - Economics ( email )

410 Arps Hall
1945 N. High St.
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United States

Donald R. Haurin (Contact Author)

Ohio State University (OSU) - Economics ( email )

154 N. Oval Mall
1010G Derby Hall
Columbus, OH 43210-1172
United States
614-292-0482 (Phone)
614-292-9530 (Fax)

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