The Interactive Effects of Housing Assistance and Food Stamps

Joseph Harkness and Sandra J. Newman

JCPR Working Papers from Northwestern University/University of Chicago Joint Center for Poverty Research

Abstract: This paper examines whether the effects of housing assistance on food expenditures are different for recent food stamp recipients versus non-recipients. Since housing absorbs a large share of low-income household budgets, it is plausible to expect that housing assistance could free up substantial income to be spent on other basic necessities, such as food. On the other hand, if the disincentive inherent in the two programs amplify each other, there could be strong adverse effects on income, which could result in flat, or even reduced, expenditures on food. Two types of housing assistance are examined: public housing, and federally-subsidized privately-owned housing. Although both types of housing assistance are found to increase participation in the food stamp program, they have distinct effects on food spending. Public housing reduces food spending among those who were receiving food stamps before they moved in. But among those not formerly receiving food stamps, public housing tends to raise food spending. Privatelyowned assisted housing has no statistically significant effects on food spending.

Date: 2002-01-08
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Persistent link: http://EconPapers.repec.org/RePEc:wop:jopovw:272

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