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

54 Pages Posted: 29 Mar 2016

See all articles by Fredrik Andersson

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

Federal Deposit Insurance Corporation

Giordano Palloni

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

Henry Pollakowski

Harvard University - Harvard Graduate School of Design

Daniel H. Weinberg

DHW Consulting

Date Written: March 1, 2016

Abstract

To date, research on the long-term effects of childhood participation in voucher-assisted and public housing has been limited by the lack of appropriate data and suitable identification strategies. We create a new, national-level longitudinal data set on housing assistance and labor market earnings to explore how children’s housing affects their later earnings. While naïve estimates suggest there are substantial negative long-term consequences to childhood participation in voucher-assisted and public housing, these relationships appear to be driven largely by negative selection into housing assistance programs. To mitigate this source of bias, we employ household fixed-effects specifications that use only within-household (across-sibling) variation for identification. Compared to naïve specifications, household fixed-effects estimates are more positive for all demographic groups and, for some groups, positive and statistically significant. Black non-Hispanic females, in particular, benefit from time spent in both voucher-assisted and public housing. Exploiting the between sibling variation accounts for unobserved time-invariant family attributes that may influence outcomes but does not address time varying within household factors that may be at work. We use a number of strategies to address these issues and find our results are results are largely robust to these concerns.

JEL Classification: H43; I31; I38; J38; J62

Suggested Citation

Andersson, Per Fredrik Daniel and Haltiwanger, John C. and Kutzbach, Mark J. and Palloni, Giordano and Pollakowski, Henry O. and Weinberg, Daniel H., Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing (March 1, 2016). US Census Bureau Center for Economic Studies Paper No. CES-WP-13-48R. Available at SSRN: https://ssrn.com/abstract=2755595 or http://dx.doi.org/10.2139/ssrn.2755595

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

Federal Deposit Insurance Corporation ( email )

550 17th Street NW
Washington, DC 20006

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 - Harvard 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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