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Recipients of housing assistance under welfare reform: Trends in employment and welfare participation

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  • Joseph Harkness
  • Sandra Newman

Abstract

Between 1994 and 2001, the employment of low‐skilled single mothers increased dramatically and the welfare rolls shrank. Did these gains extend to single mothers who received federal housing assistance? This question is important because these women constitute a large, highly disadvantaged group and because housing assistance may work at cross‐purposes to welfare reform by fostering dependency on public support. The prospect of deep cuts in housing programs adds to the timeliness of this research. We find that employment increased as much for single mothers who received housing assistance as for those who did not. Although welfare participation appears to have declined somewhat less for single mothers getting housing assistance, this may be due to inadequate data. Demographic differences do not appear to matter. Gains from increased employment more than offset welfare losses, for an estimated annual net savings of approximately $265 million in government outlays for housing subsidies in 2001.

Suggested Citation

  • Joseph Harkness & Sandra Newman, 2006. "Recipients of housing assistance under welfare reform: Trends in employment and welfare participation," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 81-108.
    • Handle: RePEc:taf:houspd:v:17:y:2006:i:1:p:81-108
    DOI: 10.1080/10511482.2006.9521562
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    Cited by:

    1. Sandra J. Newman, 2008. "Does housing matter for poor families? A critical summary of research and issues still to be resolved," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(4), pages 895-925.
    2. Carlson, Deven & Haveman, Robert & Kaplan, Tom & Wolfe, Barbara, 2012. "Long-term earnings and employment effects of housing voucher receipt," Journal of Urban Economics, Elsevier, vol. 71(1), pages 128-150.
    3. Sandra Newman & C. Scott Holupka & Joseph Harkness, 2009. "The long-term effects of housing assistance on work and welfare," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(1), pages 81-101.
    4. Barbara A. Haley & Aref N. Dajani, 2015. "Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients," Poverty & Public Policy, John Wiley & Sons, vol. 7(4), pages 307-335, December.
    5. Simon Feeny & Rachel Ong & Heath Spong & Gavin Wood, 2012. "The Impact of Housing Assistance on the Employment Outcomes of Labour Market Programme Participants in Australia," Urban Studies, Urban Studies Journal Limited, vol. 49(4), pages 821-844, March.
    6. Robert Haveman & Barbara Wolfe, 2012. "Long-Term Effects of Public Low-Income Housing Vouchers: Work, Neighborhood, Family Composition and Childcare Usage," CEPR Discussion Papers 667, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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