Title

Life Shocks and Homelessness

Author(s)

Marah A. Curtis Marah Curtis (Boston University)

Hope Corman Hope Corman (Rider University and National Bureau of Economic Research)

Kelly Noonan Kelly Noonan (Rider University and National Bureau of Economic Research)

Nancy E. Reichman Nancy Reichman (University of Medicine and Dentistry of New Jersey)

Abstract

We exploit an exogenous health shock the birth of a child with a severe health condition to investigate the causal effect of a life shock on homelessness. Using survey data from the Fragile Families and Child Wellbeing study that have been augmented with information from hospital medical records, we find that the health shock increases the likelihood of homelessness three years later, particularly in cities with high housing costs. Homelessness is defined using both a traditional measure and a more contemporary measure that includes residential instability and doubling up without paying rent. The findings are consistent with the economic theory of homelessness, which posits that homelessness results from a conjunction of adverse circumstances in which housing markets and individual characteristics collide. They also add to a growing body of evidence that housing markets are an important contributor to homelessness and suggest that homelessness is a problem not easily addressed by existing public support programs.

Creation Date

2012-02

Section URL ID

CRCW

Paper Number

WP12-03-FF.pdf

URL

https://www.nber.org/system/files/working_papers/w16826/w16826.pdf

File Function

Jel

D190, H310, I000, J130, J120

Keyword(s)

child health, housing, homelessness, housing markets, families

Suppress

false

Series

8