The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery

Brian Aaron Jacob · Jens Ludwig

257 citations0/0 files storedAmerican Economic Review

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Gender, Labor, and Family Dynamics Housing Market and Economics Labor market dynamics and wage inequality

Abstract

This study estimates the effects of means-tested housing programs on labor supply using data from a randomized housing voucher wait-list lottery in Chicago. Economic theory is ambiguous about the expected sign of any labor supply response. We find that among working-age, able-bodied adults, housing voucher use reduces labor force participation by around 4 percentage points (6 percent) and quarterly earnings by $329 (10 percent), and increases Temporary Assistance for Needy Families program participation by around 2 percentage points (15 percent). We find no evidence that the housing-specific mechanisms hypothesized to promote work, such as neighborhood quality or residential stability, are important empirically. (JEL I38, J22, R23, R38)

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1997Neighborhoods and Violent Crime: A Multilevel Study of Collective Efficacy 200261. Capitalism and Freedom 2007Experimental Analysis of Neighborhood Effects 1982Multivariate regression models for panel data 2001Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment 1981An Empirical Model of Labor Supply in a Life-Cycle Setting 1977Equality and Efficiency: The Big Tradeoff. By Arthur M. Okun. (Washington, D.C.: The Brookings Institution, 1975. Pp. 124. $6.95.)1980An Empirical Model of Labor Supply in a Life Cycle Setting

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