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Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients

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  • Barbara A. Haley
  • Aref N. Dajani
Abstract
This research addresses the question of whether housing assistance provided a perverse incentive for welfare recipients to remain on the rolls following the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. Merging the 1996 Survey of Income and Program Participation (SIPP) with HUD's administrative records provides a unique opportunity to test whether recipients of housing assistance were more likely to stay on the welfare program four years after the enactment of PRWORA. This dataset contains a nationally representative sample of welfare recipients. Quarterly data, including sources of income, were obtained from these families of welfare recipients for four years. Results indicate that in an era of plunging welfare rolls, receipt of housing assistance did not account for those who remained on Temporary Assistance to Needy Families (TANF). These data show that housing assistance was not a perverse incentive to remain on welfare in the aftermath of the welfare reform of 1996. Instead, those who failed to exit the rolls four years after TANF was enacted had high obligations to children, lacked prior participation in the labor force, and lacked access to an automobile.

Suggested Citation

  • Barbara A. Haley & Aref N. Dajani, 2015. "Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients," Poverty & Public Policy, John Wiley & Sons, vol. 7(4), pages 307-335, December.
    • Handle: RePEc:wly:povpop:v:7:y:2015:i:4:p:307-335
    DOI: 10.1002/pop4.118
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    References listed on IDEAS

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    1. Rosen, Harvey S., 1985. "Housing subsidies: Effects on housing decisions, efficiency, and equity," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 7, pages 375-420, Elsevier.
    2. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    3. Brian A. Jacob & Jens Ludwig, 2008. "The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery," NBER Working Papers 14570, National Bureau of Economic Research, Inc.
    4. Joseph Harkness & Sandra Newman, 2006. "Recipients of housing assistance under welfare reform: Trends in employment and welfare participation," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 81-108.
    5. Shroder, Mark, 2010. "Housing Subsidies and Work Incentives," MPRA Paper 26019, University Library of Munich, Germany.
    6. Brian A. Jacob & Jens Ludwig, 2012. "The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery," American Economic Review, American Economic Association, vol. 102(1), pages 272-304, February.
    7. Alaimo, K. & Olson, C.M. & Frongillo E.A., Jr. & Briefel, R.R., 2001. "Food insufficiency, family income, and health in US preschool and school-aged children," American Journal of Public Health, American Public Health Association, vol. 91(5), pages 781-786.
    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.
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    Cited by:

    1. Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2021. "Ten years later: Self‐sufficiency of welfare mothers before the Great Recession," Poverty & Public Policy, John Wiley & Sons, vol. 13(2), pages 184-223, June.
    2. Barbara A. Haley, 2017. "Does Stigma Inhibit Labor Force Participation of Young Millennials Who Receive Housing Assistance?," Poverty & Public Policy, John Wiley & Sons, vol. 9(1), pages 71-95, March.
    3. Denton R. Vaughan & Barbara A. Haley & Aref N. Dajani, 2020. "Trends Over Time in Employment for Mothers Who Received Welfare Benefits in 1996," Poverty & Public Policy, John Wiley & Sons, vol. 12(3), pages 271-303, September.

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