Rental Assistance in Middle-Income Countries:Quasi-experimental Evidence from Chile

Javiera Selman

Working Papers from University of Chile, Department of Economics

Abstract: This paper presents the first evaluation of a rental voucher program in a middle-income country:Chile. I estimate treatment effects before and after the COVID-19 outbreak using a local randomization regression discontinuity design and administrative and survey data. Pre-pandemic results mirror U.S. evidence: voucher receipt improved housing conditions and increased mobility but did not lead to relocation to higher-quality neighborhoods. Postpandemic results (November 2020) show that vouchers helped low-income families cope with the aggregate shock by reducing reliance on debt and enhancing housing stability. Findings highlight a previously underappreciated insurance role of rental subsidies during periods of economic distress.

Pages: 47 pages
Date: 2025-05
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