Working Paper: NBER ID: w21071
Authors: Robert Collinson; Ingrid Gould Ellen; Jens Ludwig
Abstract: The United States government devotes about $40 billion each year to means-tested housing programs, plus another $6 billion or so in tax expenditures on the Low Income Housing Tax Credit (LIHTC). What exactly do we spend this money on, why, and what does it accomplish? We focus on these questions. We begin by reviewing the history of low-income housing programs in the U.S., and then summarize the characteristics of participants in means-tested housing programs and how programs have changed over time. We consider important conceptual issues surrounding the design of and rationale for means-tested housing programs in the U.S. and review existing empirical evidence, which is limited in important ways. Finally, we conclude with thoughts about the most pressing questions that might be addressed in future research in this area.
Keywords: No keywords provided
JEL Codes: H53; I3; I38; R28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Low-income housing programs (H53) | Increase in housing consumption (R21) |
| Low-income housing programs (H53) | Improvement in housing quality (R21) |
| Low-income housing programs (H53) | Reduction in labor supply (J29) |
| Low-income housing programs (H53) | Reduction in earnings (J31) |
| Effective marginal tax rates (H29) | Reduction in labor supply (J29) |
| Effective marginal tax rates (H29) | Reduction in earnings (J31) |
| Inadequate housing conditions (R28) | Negative effects on health and social outcomes (I14) |