Building Without Income Mixing: Public Housing Quotas in France

Guillaume Chapelle (), Laurent Gobillon and Benjamin Vignolles ()
Additional contact information
Guillaume Chapelle: Université de Paris
Benjamin Vignolles: CREST

No 17854, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of the SRU law introduced in France in December 2000 to support scattered development of public housing in cities and favor social mixity. This law imposes 20% of public dwellings to all medium and large municipalities of large-enough cities, with fees for those not abiding by the law. Using exhaustive fiscal data, we evaluate the effects of the law over the 1996-2008 period using a difference-in-differences approach at the municipality and neighborhood levels. We find that the law stimulated public housing construction in treated municipalities, but only slightly increased the presence of low-income households. Indeed, new public dwellings enter categories to which medium-income are eligible and most additional occupants are not poor. Within municipalities, the policy decreased public housing segregation but it barely decreased low-income segregation. This comes from local authorities increasing over time the presence of public dwellings in neighborhoods away from existing public housing but in places concentrating low-income households.

Keywords: construction; policy evaluation; public housing; segregation (search for similar items in EconPapers)
JEL-codes: R31 R38 (search for similar items in EconPapers)
Date: 2025-04
New Economics Papers: this item is included in nep-eur
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Related works:
Working Paper: Building without income mixing: Public housing quotas in France (2025)
Working Paper: Building without income mixing: Public housing quotas in France (2025)
Working Paper: Building without income mixing: Public housing quotas in France (2025)
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