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| Author: | Kangasharju, A. |
| Title: | Housing allowance and the rent of low-income households |
| Journal: | Scandinavian Journal of Economics
2010 : SEP, VOL 112:3 p. 595-617 |
| Index terms: | public sector reforms subsidies |
| Freeterms: | low-income housing rental housing |
| Language: | eng |
| Abstract: | This paper studies the effect a housing allowance programme has on the rent paid by subsidized low-income households. The data comprises of 12,000 rental households in the free-market and municipal sectors. The effect is estimated using the 2002 programme reform as an instrument. The reform raised the allowance of the assisted households depending on housing characteristics, but had little effect on the eligibility. The results imply that in the private sector, one additional euro of allowance raises the rent of claimants by 6070 cents. The effect is nonexistent in the municipal sector, as rents are tied to the housing costs. |
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