Author Description

This study uses a new data set combining survey and administrative data to investigate the longitudinal effects of subsidized housing on a broad range of outcomes relating to dependency. Given a household's assistance status in 1996, it examines outcomes over the subsequent 3 years. The aim is to produce a credible comparison group by matching on the same variables (measured in an earlier period) as the outcomes to be examined. Both subsidized and comparison households made strong gains from 1996 to 1999, showing sharp increases in income, employment, and earnings and reductions in poverty and transfer program participation. The earnings of people in the comparison group increased more rapidly, however, suggesting that housing subsidy programs reduce individual earnings by roughly 15 percent. In two of the three programs, similar results were found for family earnings, much of which can be explained by reductions in household size of 5 to 10 percent. Impacts of subsidy programs on program participation were small and inconsistent, suggesting little effect. Although these programs are found to affect neighborhood choice, neighborhood poverty rates explain little of the impact on individual earnings.