Housing Affordability and Child Well-Being
Sandra J. Newman and
C. Scott Holupka
Housing Policy Debate, 2015, vol. 25, issue 1, 116-151
Abstract:
We test three hypotheses about the role of housing affordability in child cognitive achievement, behavior, and health. Using longitudinal data from the Panel Study of Income Dynamics, we apply both propensity-score matching and instrumental-variable modeling as identification strategies and test the sensitivity of results to omitted variable bias. The analysis reveals an inverted-U-shaped relation between the fraction of income devoted to housing and cognitive achievement. The inflection point at approximately 30% supports the long-standing rule-of-thumb definition of affordable housing. There is no evidence of affordability effects on behavior or health.
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:taf:houspd:v:25:y:2015:i:1:p:116-151
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DOI: 10.1080/10511482.2014.899261
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