The Effects of Homeownership on Children's Outcomes: Real Effects or Self-Selection?
Version of Record online: 5 JUL 2012
© 2012 American Real Estate and Urban Economics Association
Real Estate Economics
Volume 40, Issue 3, pages 566–602, Fall 2012
How to Cite
Holupka, S. and Newman, S. J. (2012), The Effects of Homeownership on Children's Outcomes: Real Effects or Self-Selection?. Real Estate Economics, 40: 566–602. doi: 10.1111/j.1540-6229.2012.00330.x
- Issue online: 23 AUG 2012
- Version of Record online: 5 JUL 2012
This article examines whether there is a “homeownership effect” for lower-income racial and ethnic groups who have been the target of public policies to expand homeownership. We use two different methods to account for selection, statistical matching and instrumental variable analysis; test direct and indirect (mediator) effects of homeownership on children's cognitive achievement, behavior problems and health using the Panel Study of Income Dynamics and its Child Development Supplement; and replicate the main effects tests using the National Longitudinal Survey of Youth. We find little evidence of beneficial homeownership effects and suggest that previous analyses may have mistaken selection differences for the effect of homeownership itself.