Housing allowances: still struggling to make ends meet

Véronique Flambard

Housing Studies, 2019, vol. 34, issue 4, 688-714

Abstract: Housing allowances aim at providing adequate and affordable housing. A theoretical discussion and literature review show why it is challenging for housing allowances to actually shield households from financial hardship. Using National French Housing Survey data, an original application with a probit model with a double sample selection (being a tenant, and being eligible for means-tested allowances) follows. Estimation results show that housing allowances help to cope with some life events but that otherwise their recipients remain more exposed to housing financial hardship than their counterparts do. The gap between recipients and non-recipients is larger for the households with children than for those without despite the goal of horizontal equity. A nonlinear decomposition shows that the difference in probability between recipients and non-recipients is mostly explained by the endowment of characteristics in 2001 and by the return to risk in 2013.

Date: 2019
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DOI: 10.1080/02673037.2018.1468420

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