The Effect of Housing Assistance Program on Labor Supply and Family Formation
August 2022
Working Paper Number:
CES-22-35
Abstract
This paper studies the effect of U.S. Housing Choice Voucher Program Section 8 on low-income people' labor supply and family formation. I analyse this effect using data from the 2014 Panel and 2018 Panel of the restricted-use Survey of Income and Program Participation (SIPP). My economic approach is to explore the policy which assigns housing vouchers based on an income cutoff as an instrument to study the effect of housing vouchers on low-income people's employment and family formation. The assignment policy states that households with income lower than 50% of the median income for the MSA area are eligible for housing vouchers. With household eligibility status, I compare the households whose income is slightly below the income cutoff (eligible households) with the households whose income is slightly above the income cutoff (ineligible household) to identify the effect of housing vouchers on employment and family formation. I find that housing vouchers have a negative impact on individual labor supply through both extensive and intensive margins. In addition, housing vouchers also negatively impact family formation by decreasing marriage and increasing divorce rates. This project will contribute to understanding the effect of Section 8 Housing Vouchers on low-income households' labor supply and family formation.
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:
respondent,
subsidy,
welfare,
housing,
unemployed,
dependent,
family,
family income,
household income,
rent,
renter,
eligibility,
eligible,
homeowner,
income households,
subsidized
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Metropolitan Statistical Area,
Department of Economics,
Housing and Urban Development,
Survey of Income and Program Participation,
Department of Housing and Urban Development,
Census Bureau Disclosure Review Board,
Disclosure Review Board,
Federal Statistical Research Data Center
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