IDEAS home Printed from https://ideas.repec.org/p/hhs/uunewp/2006_001.html
   My bibliography  Save this paper

The Dynamics of Housing Allowance Claims in Sweden: A discrete-time hazard analysis

Author

Listed:
  • Chen, Jie

    (Department of Economics)

Abstract

This paper analyses the dynamics of the duration of housing allowance claims in Sweden during the period 1991 to 2002. The central concern in this paper is whether the Swedish housing allowance system creates dependence on welfare. Using longitudinal data from Swedish micro database-LINDA, this paper found that there is no evidence of negative duration dependence arising from the duration of housing allowance claims. This finding is consistent across different model specifications and various controls of the heterogeneity issue. Hence we come to the conclusion that a recipient’s exit rate from the system does not decrease over the duration claim. This paper also shows that the demographic characteristics, educational background, labour market status and economic contextual conditions play important roles in determining recipients’ conditional probability of exiting from the housing allowance system. However, there are substantial variations in the factors’ impact across different household types.

Suggested Citation

  • Chen, Jie, 2006. "The Dynamics of Housing Allowance Claims in Sweden: A discrete-time hazard analysis," Working Paper Series 2006:1, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2006_001
    as

    Download full text from publisher

    File URL: http://uu.diva-portal.org/smash/get/diva2:110971/FULLTEXT01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Early, Dirk W., 2004. "The determinants of homelessness and the targeting of housing assistance," Journal of Urban Economics, Elsevier, vol. 55(1), pages 195-214, January.
    2. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    3. Bengt Turner & Marja Elsinga, 2005. "Housing Allowances: Finding a Balance Between Social Justice and Market Incentives," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(2), pages 103-109.
    4. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    5. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    6. Per-Anders Edin & Magnus Gustavsson, 2008. "Time Out of Work and Skill Depreciation," ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
    7. Koning, Ruud H. & Ridder, Geert, 1997. "Rent assistance and housing demand," Journal of Public Economics, Elsevier, vol. 66(1), pages 1-31, October.
    8. Forslund, Anders & Gottfries, Nils & Westermark, Andreas, 2005. "Real and nominal wage adjustment in open economies," Working Paper Series 2005:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Blomquist, Soren & Micheletto, Luca, 2006. "Optimal redistributive taxation when government's and agents' preferences differ," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1215-1233, August.
    10. Robert A. Moffitt, 2000. "Welfare Benefits and Female Headship in U.S. Time Series," American Economic Review, American Economic Association, vol. 90(2), pages 373-377, May.
    11. Fallis, George, 1990. "The optimal design of housing allowances," Journal of Urban Economics, Elsevier, vol. 27(3), pages 381-397, May.
    12. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August.
    13. Holmberg, Pär, 2009. "Numerical calculation of an asymmetric supply function equilibrium with capacity constraints," European Journal of Operational Research, Elsevier, vol. 199(1), pages 285-295, November.
    14. Bhat, Chandra R., 1996. "A hazard-based duration model of shopping activity with nonparametric baseline specification and nonparametric control for unobserved heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 189-207, June.
    15. Dahlberg, Matz & Mörk, Eva, 2004. "Public employment and the double role of bureaucrats," Working Paper Series 2004:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Fischer, Will, 2000. "Labor Supply Effects of Federal Rental Subsidies," Journal of Housing Economics, Elsevier, vol. 9(3), pages 150-174, September.
    17. Matz Dahlberg & Magnus Gustavsson, 2008. "Inequality and Crime: Separating the Effects of Permanent and Transitory Income," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 129-153, April.
    18. Murray, Michael P., 1980. "A reinterpretation of the traditional income-leisure model, with application to in-kind subsidy programs," Journal of Public Economics, Elsevier, vol. 14(1), pages 69-81, August.
    19. Per Engström & Bertil Holmlund, 2007. "Worker Absenteeism in Search Equilibrium," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 439-467, September.
    20. Hoetker, Glenn, 2004. "Confounded Coefficients: Accurately Comparing Logit and Probit Coefficients across Groups," Working Papers 03-0100, University of Illinois at Urbana-Champaign, College of Business.
    21. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-1035, December.
    22. Welz, Peter & Österholm, Pär, 2005. "Interest Rate Smoothing versus Serially Correlated Errors in Taylor Rules: Testing the Tests," Working Paper Series 2005:14, Uppsala University, Department of Economics.
    23. Plant, Mark W, 1984. "An Empirical Analysis of Welfare Dependence," American Economic Review, American Economic Association, vol. 74(4), pages 673-684, September.
    24. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
    25. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 607-654.
    26. Vredin Johansson, Maria & Heldt, Tobias & Johansson, Per, 2005. "Latent Variables in a Travel Mode Choice Model: Attitudinal and Behavioural Indicator Variables," Working Paper Series 2005:5, Uppsala University, Department of Economics.
    27. Edin, P.-A. & Fredriksson, P., 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Papers 2000:19, Uppsala - Working Paper Series.
    28. Hungerford, Thomas L., 1996. "The Dynamics of Housing Assistance Spells," Journal of Urban Economics, Elsevier, vol. 39(2), pages 193-208, March.
    29. Holmberg, Par, 2008. "Unique supply function equilibrium with capacity constraints," Energy Economics, Elsevier, vol. 30(1), pages 148-172, January.
    30. Klevmarken, N. Anders, 2004. "Towards an Applicable True Cost-of-Living Index that Incorporates Housing," Working Paper Series 2004:18, Uppsala University, Department of Economics.
    31. Viggo Nordvik & PER ÅHRéN, 2005. "The Duration of Housing Allowance Claims and Labour Market Disincentives: The Norwegian Case," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(2), pages 131-146.
    32. Annika Alexius & Erik Post, 2008. "Exchange rates and asymmetric shocks in small open economies," Empirical Economics, Springer, vol. 35(3), pages 527-541, November.
    33. Fallis, George & Hosios, Arthur J. & Jump, Gregory V., 1995. "Housing Allowances, Nonprofit Housing, and Cost-Effective Program Choice," Journal of Housing Economics, Elsevier, vol. 4(2), pages 136-152, June.
    34. Sandra J. Newman & Joseph M. Harkness, 2002. "The long-term effects of public housing on self-sufficiency," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(1), pages 21-43.
    35. Steinberg Schone, Barbara, 1992. "Do means tested transfers reduce labor supply?," Economics Letters, Elsevier, vol. 40(3), pages 353-357, November.
    36. Leonesio, Michael V, 1988. "In-Kind Transfers and Work Incentives," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 515-529, October.
    37. Mark Stephens, 2005. "An Assessment of the British Housing Benefit System," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(2), pages 111-129.
    38. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
    39. Ludwig, Jens & Duncan, Greg J. & Pinkston, Joshua C., 2005. "Housing mobility programs and economic self-sufficiency: Evidence from a randomized experiment," Journal of Public Economics, Elsevier, vol. 89(1), pages 131-156, January.
    40. Susin, Scott, 2002. "Rent vouchers and the price of low-income housing," Journal of Public Economics, Elsevier, vol. 83(1), pages 109-152, January.
    41. Laferrere, Anne & Le Blanc, David, 2004. "How do housing allowances affect rents? An empirical analysis of the French case," Journal of Housing Economics, Elsevier, vol. 13(1), pages 36-67, March.
    42. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
    43. Murray, Michael P, 1994. "How Inefficient Are Multiple In-Kind Transfers?," Economic Inquiry, Western Economic Association International, vol. 32(2), pages 209-227, April.
    44. Munro, Alistair, 1989. "In-kind transfers, cash grants and the supply of labour," European Economic Review, Elsevier, vol. 33(8), pages 1597-1604, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Figari, Francesco & Hollan, Katarina & Matsaganis, Manos & Zolyomi, Eszter, 2019. "Recent changes in housing policies and their distributional impact across Europe," EUROMOD Working Papers EM12/19, EUROMOD at the Institute for Social and Economic Research.
    2. Per Engstrom & Bertil Holmlund, 2009. "Tax evasion and self-employment in a high-tax country: evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2419-2430.
    3. Jie Chen, 2008. "The Effects of Housing Allowance Benefit Levels on Recipient Duration: Evidence from the Swedish 1997 Reform," Urban Studies, Urban Studies Journal Limited, vol. 45(2), pages 347-366, February.
    4. Hallberg, Daniel, 2006. "Cross-national differences in income poverty among Europe´s 50+," Working Paper Series 2006:14, Uppsala University, Department of Economics.
    5. Fredrik Johansson-Tormod & Anders Klevmarken, 2022. "Explaining the Size and Nature of Response in a Survey on Health Status and Economic Standard," International Journal of Microsimulation, International Microsimulation Association, vol. 15(1), pages 63-77.
    6. Ågren, Martin, 2006. "Prospect Theory and Higher Moments," Working Paper Series 2006:24, Uppsala University, Department of Economics.
    7. Shroder, Mark, 2010. "Housing Subsidies and Work Incentives," MPRA Paper 26019, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fredrik Johansson-Tormod & Anders Klevmarken, 2022. "Explaining the Size and Nature of Response in a Survey on Health Status and Economic Standard," International Journal of Microsimulation, International Microsimulation Association, vol. 15(1), pages 63-77.
    2. Berg, Lennart & Berger, Tommy, 2005. "The Q theory and the Swedish housing market –an empirical test," Working Paper Series 2005:19, Uppsala University, Department of Economics.
    3. Per Engstrom & Bertil Holmlund, 2009. "Tax evasion and self-employment in a high-tax country: evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2419-2430.
    4. Jie Chen, 2008. "The Effects of Housing Allowance Benefit Levels on Recipient Duration: Evidence from the Swedish 1997 Reform," Urban Studies, Urban Studies Journal Limited, vol. 45(2), pages 347-366, February.
    5. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 887-986, Elsevier.
    6. Hallberg, Daniel, 2006. "Cross-national differences in income poverty among Europe´s 50+," Working Paper Series 2006:14, Uppsala University, Department of Economics.
    7. Bernard Fortin & Guy Lacroix, 1997. "Welfare Benefits, Minimum Wage Rate and the Duration of Welfare Spells: Evidence from a Natural Experiment in Canada," CIRANO Working Papers 97s-25, CIRANO.
    8. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
    9. Pellizzari, Michele, 2006. "Unemployment duration and the interactions between unemployment insurance and social assistance," Labour Economics, Elsevier, vol. 13(6), pages 773-798, December.
    10. Hausman, Jerry A. & Woutersen, Tiemen, 2014. "Estimating a semi-parametric duration model without specifying heterogeneity," Journal of Econometrics, Elsevier, vol. 178(P1), pages 114-131.
    11. Oscar A. Mitnik, 2007. "Intergenerational transmission of welfare dependency: The effects of length of exposure," Working Papers 0715, University of Miami, Department of Economics.
    12. Mingliang Li, 2006. "High school completion and future youth unemployment: new evidence from High School and Beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 23-53, January.
    13. Peter Kuhn & Mikal Skuterud, 2004. "Internet Job Search and Unemployment Durations," American Economic Review, American Economic Association, vol. 94(1), pages 218-232, March.
    14. Nam, Doohee & Mannering, Fred, 2000. "An exploratory hazard-based analysis of highway incident duration," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(2), pages 85-102, February.
    15. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    16. George Neumann, 1996. "Search Models and Duration Data," Econometrics 9602008, University Library of Munich, Germany, revised 07 Mar 1996.
    17. Cain Polidano & Domenico Tabasso & Yi-Ping Tseng, 2015. "A second chance at education for early school leavers," Education Economics, Taylor & Francis Journals, vol. 23(3), pages 358-375, June.
    18. Burda, Martin & Harding, Matthew, 2014. "Environmental Justice: Evidence from Superfund cleanup durations," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 380-401.
    19. Mohamed Ali Ben Halima & Thierry Debrand, 2011. "Durée d’arrêt de travail, salaire et Assurance maladie : application microéconométrique à partir de la base Hygie," Working Papers DT42, IRDES institut for research and information in health economics, revised Sep 2011.
    20. Bent Jesper Christensen & Malene Kallestrup‐Lamb, 2012. "The Impact Of Health Changes On Labor Supply: Evidence From Merged Data On Individual Objective Medical Diagnosis Codes And Early Retirement Behavior," Health Economics, John Wiley & Sons, Ltd., vol. 21(S1), pages 56-100, June.

    More about this item

    Keywords

    housing allowance; discrete-time hazard; duration dependence;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:uunewp:2006_001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ulrika Öjdeby (email available below). General contact details of provider: https://edirc.repec.org/data/nekuuse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.