The consequences of the Swedish rent control system on labor income: Evidence from a randomized apartment lottery

Cecilia Enström Öst and Per Johansson

Journal of Public Economics, 2023, vol. 221, issue C

Abstract: Using a unique randomized rental apartment lottery in Stockholm metropolitan statistical area, this paper analyses behavioral effects on individuals receiving a rent-controlled contract in the Swedish rent control program. The result shows that receiving a rent-controlled contract reduces the annual labor income by 13 to 20 percent and employment by 8 to 13 percent. To some extent, these effects can be explained by an increased propensity to enter higher education.

Keywords: Rent control; Apartment lottery; Labor income; Employment (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:221:y:2023:i:c:s0047272723000464

DOI: 10.1016/j.jpubeco.2023.104864

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