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Does Public Housing Occupancy Increase Unemployment?

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Executive Summary

In order to test for the effect of public housing occupancy on unemployment, the authors estimate a simultaneous probit model of unemployment and public housing. On a first sample, they instrument public housing with the gender composition of children. On a second sample, the instrument is the share of public housing at the city level. They also perform a robustness check that consists in measuring the correlation between unobservable that could explain the effect of public housing on unemployment. As the corresponding level of correlation is low, this check reinforces the result of no effect of public housing on unemployment.

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