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Gone with the Windfall: How Do Housing Allowances Affect Student Co-residence?

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  • Anne Laferrère
  • David le Blanc

Abstract

Drawing on five cross-sections of the French Housing Survey, this paper examines the effects on co-residence with their parents of the extension of housing allowances to students that took place between 1991 and 1993. Two effects are found. First housing allowances provide an increased opportunity for students to move out of their parents' home. Second, the subsidy affects not just the decision to move out, but location and housing quality choices. Finally we suggest a model to identify how much of the allowance came as a windfall gain to parents. Defining the windfall gain as being the subsidies distributed to students who can study locally and whose choice would have been to live independently without the subsidy, we find that as much as half of the allowance came as a windfall gai to students and their parents. (JEL H22, H23, I22, I28)

Suggested Citation

  • Anne Laferrère & David le Blanc, 2004. "Gone with the Windfall: How Do Housing Allowances Affect Student Co-residence?," CESifo Economic Studies, CESifo Group, vol. 50(3), pages 451-477.
    • Handle: RePEc:oup:cesifo:v:50:y:2004:i:3:p:451-477.
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    File URL: http://hdl.handle.net/10.1093/cesifo/50.3.451
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    2. Olivier Bargain & Karina Doorley, 2009. "Caught in the Trap? The Disincentive Effect of Social Assistance," Working Papers 200906, School of Economics, University College Dublin.
    3. Fack, Gabrielle, 2005. "Pourquoi les ménages pauvres paient-ils des loyers de plus en plus élevés ?," CEPREMAP Working Papers (Docweb) 0516, CEPREMAP.
    4. Segú, Mariona & Vignolles, Benjamin, 2018. "Taxing Vacant Dwellings: Can fiscal policy reduce vacancy?," MPRA Paper 85508, University Library of Munich, Germany.
    5. Anne Laferrere, 2005. "Leaving the Nest : The Interaction of Parental Income and Family Environment," Working Papers 2005-01, Center for Research in Economics and Statistics.
    6. Mariona Segú & Benjamin Vignolles, 2016. "Taxing Vacant Apartments: Can fiscal policy reduce vacancy?," Working Papers 2016.02, International Network for Economic Research - INFER.
    7. repec:hal:spmain:info:hdl:2441/7o52iohb7k6srk09mgo4gi8k1 is not listed on IDEAS
    8. Nuno Martins & Ernesto Villanueva, 2006. "Does limited access to mortgage debt explain why young adults live with their parents?," Working Papers 0628, Banco de España.
    9. Guillaume Allegre & Guillaume Dollé, 2013. "Le logement des jeunes et des nouvelles générations, 1978-2006," Post-Print hal-03460860, HAL.
    10. Viola Angelini & Anne Laferrère, 2013. "Parental altruism and nest leaving in Europe: evidence from a retrospective survey," Review of Economics of the Household, Springer, vol. 11(3), pages 393-420, September.
    11. Corentin Trevien, 2016. "Four essays in empirical urban economics : evaluation of French regional policies [Quatre essais en économie urbaine empirique : évaluation de politiques d'aménagement du territoire]," SciencePo Working papers tel-03498772, HAL.
    12. Grobon, Sébastien & Wolff, François-Charles, 2024. "Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France," Economics of Education Review, Elsevier, vol. 98(C).
    13. Essi Eerola & Teemu Lyytikäinen, 2021. "Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 84-109, January.
    14. Céline Grislain-Letrémy & Corentin Trevien, 2022. "The Long-Term Impact of Housing Subsidies on the Rental Sector: the French Example," Working papers 886, Banque de France.
    15. Gabrielle Fack, 2005. "Pourquoi les ménages pauvres paient-ils des loyers de plus en plus élevés ? [L’incidence des aides au logement en France (1973-2002)]," Économie et Statistique, Programme National Persée, vol. 381(1), pages 17-40.
    16. Corentin Trevien, 2016. "Four essays in empirical urban economics : evaluation of French regional policies [Quatre essais en économie urbaine empirique : évaluation de politiques d'aménagement du territoire]," SciencePo Working papers Main tel-03498772, HAL.
    17. Cobb-Clark, Deborah A., 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," IZA Discussion Papers 3309, Institute of Labor Economics (IZA).
    18. repec:dau:papers:123456789/3800 is not listed on IDEAS
    19. Sébastien Grobon & François-Charles Wolff, 2022. "Do public scholarships crowd out parental transfers? Evidence from France," Documents de travail du Centre d'Economie de la Sorbonne 22009, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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    More about this item

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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