In-Kind Housing Transfers and Labor Supply: A Structural Approach

Ning Zhang

Journal of Labor Economics, 2025, vol. 43, issue 2, 585 - 633

Abstract: This paper estimates a dynamic life cycle model to study the long-term impacts of housing vouchers on employment and examine how policy reforms affect labor supply and well-being. I show that the current program decreases female employment by 17% and male employment by 7%. Compared with the current program, a proposed reform that provides every recipient with a flat-rate subsidy increases female employment by 4% and leads to higher welfare. Policies that offer a lower subsidy to a larger population decrease employment by 3%–4% and increase welfare. Time-limited subsidies increase female employment by 4% and improve overall welfare.

Date: 2025
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