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Delivering Affordable Housing and Neighborhood Quality: A Comparison of Place- and Tenant-Based Programs

Essi Eerola and Tuukka Saarimaa ()

No 6674, CESifo Working Paper Series from CESifo Group Munich

Abstract: This paper analyzes the relative merits of large place- and tenant-based housing programs in Finland in terms of housing affordability and neighborhood quality. Using hedonic regression methods and household micro data, we find that rent savings to public housing tenants are less targeted towards low-income households than housing allowance. In addition, low-income public housing tenants live in poorer, less educated and lower quality neighborhoods than similar low-income households in private rental housing. This suggests that place-based programs may lead to more segregation than tenant-based alternatives even when neighborhood mixing is an explicit aim of the program, as in Finland.

Keywords: hedonic regression; housing allowance; place-based policy; public housing (search for similar items in EconPapers)
JEL-codes: H22 R21 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-ure
Date: 2017
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