Alienating the American dream: Welfare reform and immigrant homeownership

Aaron Gamino and Feyisayo Afolayan

Economics Letters, 2025, vol. 254, issue C

Abstract: This study examines the impact of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) on homeownership among immigrants in the US. Using IPUMS CPS data from 1994 to 2019, we conduct an event study and estimate a difference-in-differences model to compare immigrant homeownership with that of natives based on the year of immigration. Our findings indicate that PRWORA led to a significant decline in the likelihood of immigrants owning a home. Notably, among immigrants, the likelihood of homeownership declined the most for Hispanics, while those with higher levels of education experienced comparatively smaller reductions. These findings contribute to policy discussions on the unintended economic effects of welfare restrictions and highlight the role of social safety nets in promoting financial stability.

Keywords: Homeownership; Welfare reform; Social safety net; Financial Stability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525003295

DOI: 10.1016/j.econlet.2025.112492

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