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Does public housing occupancy increase unemployment?

Author

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  • Claire Dujardin

    (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain)

  • Florence Goffette-Nagot

    (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper shows that living in public housing has no effect on the probability of being unemployed in France, once we account for the endogeneity of public housing. We estimate a simultaneous probit model of unemployment and public housing. On a first sample for Lyon, we instrument public housing with the gender composition of children. On a second national sample, the instrument is the city-level share of public housing. Both samples yield the same conclusion, which we justify by showing that a small amount of selection on unobservables is enough to eliminate the positive effect found in "naive" estimates.

Suggested Citation

  • Claire Dujardin & Florence Goffette-Nagot, 2009. "Does public housing occupancy increase unemployment?," Post-Print halshs-00436679, HAL.
    • Handle: RePEc:hal:journl:halshs-00436679
    DOI: 10.1093/jeg/lbp002
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00436679
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    Cited by:

    1. David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," NBER Working Papers 19079, National Bureau of Economic Research, Inc.
    2. Niu, Yi & Ding, Chengri, 2015. "Unemployment matters: Improved measures of labor market distress in mortgage default analysis," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 27-38.
    3. Yasmine Essafi & Raphaël Languillon & Arnaud Simon, 2017. "The Relation between Aging and Housing Prices A Key Indicator for the French Spatial Wealth Reshaping [La relation Vieillissement-Prix immobiliers : un indicateur clé pour la réorganisation spatial," Working Papers halshs-01654445, HAL.
    4. Dujardin, Claire & Goffette-Nagot, Florence, 2010. "Neighborhood effects on unemployment?: A test à la Altonji," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 380-396, November.
    5. Florence Goffette-Nagot & Modibo Sidibé, 2011. "Housing Wealth Accumulation: The Role of Public Housing," Post-Print halshs-00673746, HAL.
    6. Goffette-Nagot, Florence & Sidibé, Modibo, 2016. "Housing wealth accumulation: The role of public housing," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 12-22.
    7. Benoît Schmutz, 2015. "Spatial sorting of African Immigrants in the French Public Housing Market," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(3), pages 247-270, September.
    8. Zurab Abramishvili & William Appleman & Sergii Maksymovych, 2019. "Parental Gender Preference in the Balkans and Scandinavia: Gender Bias or Differential Costs?," CERGE-EI Working Papers wp643, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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    More about this item

    Keywords

    Public housing; unemployment; simultaneous probit models; instrumental variables;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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