Journal of Housing Economics

Abstract

Federal rental subsidies appear to create disincentives for work through marginal taxes on earnings, income effects, and requirements that nonrecipients on waiting lists maintain low incomes in order to remain eligible. This paper takes advantage of the rationing of housing subsidies by identifying labor supply effects using analytic methods that could not be validly applied to unrationed programs. It finds that subsidies substantially reduce hours worked and labor force participation among recipients. q 2000 Academic Press

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