Journal Article

Does public housing occupancy increase unemployment?

Claire Dujardin and Florence Goffette-Nagot

in Journal of Economic Geography

Volume 9, issue 6, pages 823-851
Published in print November 2009 | ISSN: 1468-2702
Published online February 2009 | e-ISSN: 1468-2710 | DOI: https://dx.doi.org/10.1093/jeg/lbp002
Does public housing occupancy increase unemployment?

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  • Mobility, Unemployment, and Vacancies
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This article 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.

Keywords: public housing; unemployment; simultaneous probit models; instrumental variables; R2; J64

Journal Article.  12668 words.  Illustrated.

Subjects: Mobility, Unemployment, and Vacancies ; Household Analysis

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