Work Requirements in Public Housing: Impacts on Tenant Employment and Evictions

In recent years, many have debated adopting work requirements in the public housing program, and a limited number of public housing agencies (PHA) have implemented these policies through the flexibility provided by the Moving to Work program. One such agency—the Charlotte Housing Authority (CHA)—has implemented a work requirement across five (of 15) public housing developments that mandates households to work 15 hr weekly or face sanctions. This article evaluates this policy and presents the first empirical analysis on the outcomes of a work requirement on employment and evictions. We find that, following work requirement enforcement, the percentage of impacted households paying minimum rent (a proxy for nonemployment) decreased versus a comparison group. Analysis of additional data on both employment and hours worked indicates similar results regarding employment gains, but no increase in average hours worked. We find no evidence that work requirement sanctions increased evictions, and very modest evidence that enforcement increased the rate of positive move-outs such as moves to unsubsidized housing.     

Last in line: Housing assistance for households with children

Abstract

This article examines the relationship between receipt of different types of rental housing assistance and housing outcomes for households with children. We rely on the 1989 American Housing Survey (AHS) and a special data supplement that attempted to accurately categorize every assisted renter‐occupied address in the AHS sample as either public housing; privately owned, federally assisted housing; or certificates and vouchers. Housing outcomes examined are physical condition of the unit, crowding, affordability, perceived neighborhood quality, and crime. We analyze three research questions: (1) Do the characteristics of households enrolled in housing programs differ by program type? (2) Do housing outcomes differ with the type of assistance received? (3) Do differences in household characteristics account for observed differences in program outcomes?

The analysis suggests that the housing assistance system channels different types of households with children into different housing programs. The least disadvantaged households are most likely to end up in privately owned assisted stock, while the most disadvantaged end up in public housing. The most notable interprogram difference in housing outcomes relates to neighborhood quality. In contrast to other forms of rental assistance, residence in public housing is associated with a decline in neighborhood quality. This result holds even after controlling for household characteristics and geographic location of the unit.     

Evaluating the Impacts of an Enhanced Family Self-Sufficiency Program

We conduct an impact analysis of the Denver, Colorado, Housing Authority’s Home Ownership Program (HOP) employing quasi experimental methodologies (i.e., nearest-neighbor matching, inverse probability weighting with regression adjustment) that permit causal inferences of program impacts with substantial confidence. HOP is an unusual, enhanced variant of the Family Self-Sufficiency program that incentivizes and assists participants’ purchase of a home. We analyze whether, compared with the control group, HOP participants exhibited significantly greater earnings growth during the program, enhanced economic security, and rates of home buying. We find that participants with a high intensity of treatment showed significant improvement in all outcomes. Results are robust to model specification and insensitive to omitted variable bias typically found in the social sciences. We conclude that a well-conceived and well-executed public housing authority program aimed at building the financial, human and social assets of low-income households receiving housing assistance can yield substantial benefits to participants.     

Housing Voucher Take‐Up and Labor Market Impacts

Low participation rates in government assistance programs are a major policy concern in the United States. This paper studies take‐up of Section 8 housing vouchers, a program in which take‐up rates are quite low among interested and eligible households. We link 18,109 households in Chicago that were offered vouchers through a lottery to administrative data and study how baseline employment, earnings, public assistance, arrests, residential location, and children's academic performance predict take‐up. Our analysis finds mixed evidence of whether the most disadvantaged or distressed households face the largest barriers to program participation. We also study the causal impact of peer behavior on take‐up by exploiting idiosyncratic variation in the timing of voucher offers. We find that the probability of lease‐up increases with the number of neighbors who recently received voucher offers. Finally, we explore the policy implications of increasing housing voucher take‐up by applying reweighting methods to existing causal impact estimates of voucher receipt. This analysis suggests that greater utilization of vouchers may lead to larger reductions in labor market activity. Differences in take‐up rates across settings may be important to consider when assessing the external validity of studies identifying the effects of public assistance programs.     

Why Low-Income Households Become Unstably Housed: Evidence From the Panel Study of Income Dynamics

ABSTRACT

Because of a severe shortage of affordable housing in the United States, an increasing number of low-income households suffer from housing instability. However, little evidence exists as to why they experienced housing instability, although they were stably housed at other times. By applying hybrid models to the Panel Study of Income Dynamics data, this study estimates the effects of potential household-level predictors on the likelihood of experiencing housing instability. The results show that changes in family employment structure, job insecurity, automobile ownership, and the number of adult family members within a household correlate with housing instability after controlling for changes in household income and housing costs. Moreover, I find that households with children are particularly vulnerable to housing instability. These results contribute to identifying valid household-level predictors of housing instability and developing preventive policy interventions that help unsubsidized low-income households achieve housing stability.     

The Impact of Rehabilitation and Counseling Services on the Labor Market Activity of Social Security Disability Insurance (SSDI) Beneficiaries

We use data from a social experiment to estimate the impact of a rehabilitation and counseling program on the labor market activity of newly entitled Social Security Disability Insurance (SSDI) beneficiaries. Our results indicate that the program led to a 4.6 percentage point increase in the receipt of employment services within the first year following random assignment and a 5.1 percentage point increase in participation in the Social Security Administration's Ticket to Work program within the first three years following random assignment. The program led to a 5.3 percentage point increase, or almost 50 percent increase, in employment, and an $831 increase in annual earnings in the second calendar year after the calendar year of random assignment. The employment and earnings impacts are smaller and not statistically significant in the third calendar year following random assignment, and we describe SSDI rules that are consistent with this finding. Our findings indicate that disability reform proposals focusing on restoring the work capacity of people with disabilities can increase the disability employment rate.     

How husbands and wives vote

This article uses economic theories of voting behavior and household decision making to analyze the role of own and spouse earnings in determining political voting behavior. The main predictions from these models is that earnings is one of the factors that has an impact on political preferences and in households who share resources, voting behavior will be influenced more by the most representative labor income in the family. I investigate empirically the importance of individual vs household income, and find that the importance of individual income on voting behavior is contingent on employment. On average women earn less than their husband and vote according to their husbands income. If the wife is the maximum earner of the household or works fulltime, she votes more according to her own earnings.     

The impact of child SSI enrollment on household outcomes

We use data from the Survey of Income and Program Participation (SIPP) to investigate the impact that child Supplemental Security Income (SSI) enrollment has on household outcomes, including poverty, household earnings, and health insurance coverage. The longitudinal nature of the SIPP allows us to control for unobserved, time‐invariant differences across households by measuring outcomes in the same household in the months leading up to and immediately following the first reporting of child SSI income. Our regression analyses demonstrate that for every $100 increase in household SSI income, total household income increases by roughly $72, reflecting some modest offset of other transfer income and conditional household earnings. Our analyses further demonstrate that child SSI enrollment is associated with a statistically significant and persistent reduction in the probability that a child lives in poverty of roughly 11 percentage points. Additional analyses suggest that program enrollment has virtually no impact on health insurance coverage because most new SSI recipients have health insurance from Medicaid or another source at the time of enrollment. © 2007 by the Association for Public Policy Analysis and Management     

Race and Assisted Housing

This article explores racial disparities between assisted housing outcomes of black and white and white households with children. We compare the assisted housing occupied by black and white households with children, and examine whether young adult education, employment, and earnings outcomes in 2011 differ between blacks and whites who spent part of their childhood in assisted housing in the 2000s. We use a special version of the Panel Study of Income Dynamics (PSID) that has been address-matched to federally assisted housing, and the PSID’s Transition to Adulthood supplement, along with geocode-matched data from the U.S. Census Bureau, American Community Survey (ACS), CoreLogic real estate data, and U.S. Department of Housing and Urban Development (HUD). Statistical methods include difference in means, logit and general linear models. We find no evidence of racial disparities in the type of assisted housing program, the physical quality of project-based developments, or the management of public housing developments in the 2000 decade. But black households with children are more likely to live in assisted housing that is located in poorer quality neighborhoods. Multivariate tests reveal that the worse outcomes of black young adults compared with whites disappear once socioeconomic differences are taken into account. The discrepancy in assisted housing neighborhood quality experienced by black and white children makes no additional contribution to predicting young adult outcomes. Nonetheless, black children living in relatively better assisted housing neighborhoods tend to have better outcomes in young adulthood than those who live in poorer quality assisted housing neighborhoods. We discuss sources of racial disparity in neighborhood quality, and the policies enacted and proposed to address it.     

Housing discrimination is still worth worrying about

Abstract

Several scholars claim that racial and ethnic discrimination in housing is now relatively infrequent and has little impact on the lives of black and Hispanic households. They conclude that money spent on fair housing enforcement will do little or nothing to help people in these groups. This article examines these claims.

The article concludes that these claims are not consistent with the evidence, which shows that discrimination in housing is still a common experience for blacks and Hispanics and that the cost of discrimination is still high. Moreover, discrimination constrains the opportunities of people in these groups to go to good schools, to find jobs, and to accumulate home equity. Thus, improved enforcement of fair housing legislation not only promotes principles that are at the heart of our democracy but also attacks one pillar of the system that perpetuates large intergroup disparities in earnings and wealth.     

How Vehicle Access Enables Low-Income Households to Live in Better Neighborhoods

ABSTRACT

Transportation influences residential location choices generally, but low-income households often face unique constraints because of a lack of access to automobiles. This article examines how vehicle access influences the type of neighborhoods in which low-income households are able to secure housing following a move to a new neighborhood. We rely on data from the Moving to Opportunity program to estimate locational attainment models, including a wide range of variables capturing various dimensions of neighborhood opportunity. Our findings suggest that auto access enables low-income households to secure housing in neighborhoods that exhibit a wide range of positive neighborhood attributes, including lower poverty rates, lower housing vacancy rates, higher median household income, higher labor-force participation, and higher adult high school graduation rates.     

Introduction to session 3: Estimating the costs: Perspectives on preservation of the nation's lower‐income housing stock

Abstract

This article uses survey data from the Moving to Opportunity demonstration program in Chicago to explore changes for households moving from public housing. The focus is on two key areas: housing and neighborhood conditions, and labor force participation and employment of householders. The experimental design of the program allows the differences between comparison households, which moved with a regular Section 8 voucher, and experimental households, which moved to low‐poverty neighborhoods with housing counseling assistance, to be examined.

The findings, based on interviews an average of 18 months after families moved, reveal dramatic improvements in neighborhood and housing conditions for all participating families; experimental families experienced even greater gains in terms of housing and especially neighborhood conditions. Labor force participation and employment increased for householders in both groups, likely fueled by the robust economy throughout much of the country and supporting similar findings for program participants in New York and Boston.     

Section 8 and Movement to Job Opportunity: Experience after Welfare Reform in Kansas City

Abstract

This research addresses the extent to which tenant‐based rental assistance, before and after welfare reform, helps households move to areas with greater opportunities for employment. It was thought that the threat of losing their welfare benefits would encourage participants in the Section 8 program to use the mobility it offers to move to neighborhoods with greater opportunities for employment.

Two samples of Section 8 program participants, one taken before welfare reform and the other taken after it was enacted, have been examined. With the strong economy after welfare reform, more Section 8 households are employed and fewer are on welfare. However, the analysis finds that, independent of welfare reform, households did not use their housing subsidy to move to areas with greater opportunities for employment. Program participants typically remained in racially concentrated areas of the central city, away from those neighborhoods with job growth or large numbers of jobs.     

Searching for Affordability and Opportunity: A Framework for the Housing Choice Voucher Program

Abstract

Affordability, a key factor in the housing search process, becomes critical when locating rental housing in opportunity-rich areas. The Housing Choice Voucher (HCV) program accommodates low-income households searching for housing and encourages recipients to reside in low-poverty areas. Affordable neighborhoods that are accessible to public transportation are often found in distressed areas, and not all HCV recipients succeed in locating qualified housing. To address these challenges, a housing search framework is developed to assist HCV households in the housing search process. This framework builds on the methodology of the U.S. Department of Housing and Urban Development (HUD) for the Location Affordability Index and Affirmatively Furthering Fair Housing assessment tool by creating multivariate indices that incorporate housing supply, accessibility to opportunity, and neighborhood conditions. The framework serves as a foundation for an online housing search application for public housing authorities to further fair housing goals, HCV recipients to locate qualified housing units, and local governments to assess affordability and opportunity.     

The long‐term effects of public housing on self‐sufficiency

Recent years have witnessed an intensification of the debate about the fundamental purpose of public assistance to the poor and the effects of these programs on children. This study uses enriched data from the Panel Study of Income Dynamics to examine the effects of living in public housing as a child at some point between 1968 and 1982 on four young adult outcomes: welfare receipt; individual earnings; household earnings relative to the federal poverty line; and employment. Living in public housing during childhood increased employment, raised earnings, and reduced welfare use, but had no effect on household earnings relative to the poverty line. The beneficial effects could have arisen because public housing improved physical living conditions, reduced residential mobility, or enabled families to spend more of their income on items that benefit children's development. Whether these effects apply to contemporary public housing is unknown. © 2002 by the Association for Public Policy Analysis and Management.     

Child characteristics and successful use of housing vouchers: Estimates from the moving to opportunity demonstration

Abstract

Voucher‐based programs have become the most common form of housing assistance for low‐income families in the United States, yet only a slim majority of households that are offered vouchers actually move with them. This article uses data from 2,938 households in the Moving to Opportunity demonstration program to examine whether child characteristics influence the probability that a household will successfully use a housing voucher to lease‐up.

Our results suggest that while many child characteristics have little bearing on the use of housing vouchers, child health, behavioral, and educational problems, particularly the presence of multiple problems in a household, do have an influence. Households with two or more child problems are 7 percentage points less likely to move than those who have none of these problems or only one. Results suggest that such families may need additional support to benefit from housing vouchers or alternative types of affordable housing units.     

Homeownership counseling performance: How can it be measured?

Abstract

Homeownership counseling encompasses several educational activities. Early approaches focused on reducing the risk of default and foreclosure among participants in government‐assisted mortgage programs, but more recent approaches have focused on increasing homeownership opportunities among low‐income and minority households. Unfortunately, little is known about the effectiveness of these approaches in terms of the number of new homeowners and the mitigation of default risk. To address that gap, this article presents a theoretical and methodological framework to evaluate counseling efforts.

A successful counseling program is defined as one that assists a household with a low long‐term probability of ownership in buying a home and reducing its default risk. We concede that the methodological requirements for evaluating counseling are somewhat restrictive. However, if we establish an evaluation procedure using these goals as a framework, we can more accurately determine the effects of counseling on the sustainability of low‐income homeownership.     

Shelter Poverty in Ohio: An Alternative Analysis of Rental Housing Affordability

ABSTRACT

In the United States, housing is most commonly considered unaffordable when a household spends more than 30% of income on housing and utilities. Although easy to calculate, it fails to account for how other categories of essential expenses affect income available to spend on housing. This article compares the ratio-based approach with shelter poverty, a measure that accounts for these elements, evaluating differences in results between the two methods among renters in Ohio. Shelter poverty identifies a higher rate of households in economic distress due to housing market conditions. Further, the average “affordability gap” is four times higher using the shelter poverty than with the 30% threshold. Relative to shelter poverty, the ratio method underestimates the unaffordability of rental housing in economically distressed areas, as measured by median household income, and modestly overestimates it in high-income areas.     

Con a voluntary workfare program change the behavior of welfare recipients? new evidence from washington state's family independence program (FIP)

This article examines a voluntary workfare demonstration program in Washington state—the Family Independence Program (FIP)—designed to encourage longer-term investments in employment and training (E&T) activities, with the ultimate objective of achieving economic self-sufficiency for welfare recipients. A unique longitudinal data set is used to compare E&T enrollment and the labor market and welfare outcomes for a sample of FIP clients and a comparison group of Aid to Families with Dependent Children (AFDC) recipients subject to the state's mandatory workfare requirements. Correcting for self-selection, the estimates obtained indicate that FIP's combination of financial incentives, enhanced support services, and a more client-centered environment results in an E&T enrollment rate that is from 9 to 12 percentage points higher during the post-FIP June 1989 to May 1990 period than the rate for respondents subject to the state's workfare program. Relative to the enrollment rate calculated for nonparticipants, FIP net impact estimates in this range represent a 33 to 44 percent increase in E&T enrollment. These results offer a more positive assessment of the potential of a voluntary workfare program to affect the behavior of welfare recipients than does the large-scale FIP evaluation carried out by the Urban Institute. However, both the evidence presented here and the Urban Institute's evaluation suggest that FIP had little impact on employment and earnings but significantly increased welfare receipt and the level of welfare benefits.     

Causes of the growth of homelessness during the 1980s

Abstract

This article presents an analysis of the factors that predicted 1989 homelessness rates in large U.S. cities. Data were collected to describe homelessness rates in the 182 cities with populations over 100,000. In addition, variables were assembled to represent many factors that have been hypothesized to cause homelessness, including each city's housing and income conditions, household resources, employment conditions, employment structure, available public benefits, and cost of living. The researcher used regression analysis to assess the impact of each hypothesized causal factor on between‐city differences in 1989 homelessness rates for the 147 primary cities in the data set (excluding suburbs) and for subgroup breakouts based on level of manufacturing employment and population growth from 1980 to 1986. The article ends with a discussion of policy implications of the patterns discovered.