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There is no free house

Picarelli, Nathalie (2019) There is no free house. Journal of Urban Economics, 111. pp. 35-52. ISSN 0094-1190

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Identification Number: 10.1016/j.jue.2019.04.002


This paper estimates the effect of a housing relocation program on the labor supply and living conditions of low-income households across major cities in South Africa. Using panel microdata collected between 2008 and 2014, it exploits the arbitrary eligibility rules of the policy with a fuzzy regression discontinuity design to obtain reduced form estimates. There are three main findings. First, in the short-term of 2 to 4 years following relocation, the labor supply of recipient households decreases, driven mostly by a reduction of female hours. Second, the large increase in distance (km) to economic opportunities seems to be an important factor behind the decline, directly or indirectly through family shifts in earning strategies. Finally, evidence is limited regarding improvements in housing and neighborhood quality. Overall, there is no clear indication that the net welfare effect of relocation is positive.

Item Type: Article
Additional Information: © 2019 Elsevier Inc.
Divisions: Methodology
Geography & Environment
International Development
Subjects: H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HC Economic History and Conditions
Date Deposited: 29 Apr 2019 10:51
Last Modified: 16 May 2024 02:42

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