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Office of News and Information
Johns Hopkins University
3003 N. Charles Street, Suite 100
Baltimore, Maryland 21218-3843
Phone: (410) 516-7160
Fax (410) 516-5251

April 8, 2002
MEDIA CONTACTS: Lavinia Edmunds
or Glenn Small
(410) 516-6094 or (410) 516-4186
ledmunds@jhu.edu or glenn@jhu.edu

Public Housing Can Have Positive Impacts on Children

Public housing projects are commonly regarded as breeding grounds for drugs and crime, not positive places in which to grow up. But a new study, by researchers at the Johns Hopkins Institute for Policy Studies, showed that poor children who spent at least some of their pre-teen or teenage years in public housing were better off than had they not lived in public housing.

The study by Sandra Newman and Joseph Harkness, published in a recent issue of the Journal of Policy Analysis and Management, compared public housing residents with eligible non-residents, using 25 years worth of records. To gain a clearer idea of the impact of public housing, the researchers took account of such factors as family income and education levels of parents.

Key findings include:

Every year someone lived in public housing between the ages of 10 and 17 increased by 7 percentage points the chances of that person later working between the ages of 25 and 27.

People who lived in public housing later spent less time on welfare. For every year of public housing residence, welfare use was reduced by nearly 3/4 of a year between the ages of 20 and 27.

Every year of public housing residence increased annual earnings between the ages of 25 and 27 by $1,860.

Children who grew up in public housing still faced obstacles of poverty and had worse outcomes on most measures than children of similar income levels who did not live in public housing. But when public housing was isolated from other factors, their worse prospects were shown to be due to their more disadvantaged family backgrounds, not public housing itself.

According to the authors, public housing may have improved the life chances of children because it offered improved living conditions and less transience. Housing subsidies also free up additional income that families can spend on items to benefit children's development, they said. In addition, public housing could relieve financial pressure on parents, reducing their levels of stress and depression.

Newman's and Harkness' work, "The Long Term Effect of Public Housing on Self-Sufficiency," is the first study of long-term effects of public housing on children. Most research in housing has addressed "bricks and mortar" issues, such as the number of dwelling units meeting housing codes. But as the goals of assisted housing have shifted from shelter to self-sufficiency, debate has increasingly focused on the need for improving outcomes, such as labor force participation.

Housing policy has changed too, as the government has attempted to reduce the concentration of the very poor in assisted housing developments. Assisted housing has begun to serve more mixed-income residents, similar to the composition of assisted housing during the 1970s, the period examined in the study.

To measure the long-term effects, Harkness and Newman used the Panel Study of Income Dynamics (PSID), a database at the University of Michigan, which is an ongoing survey of U.S. households since 1968. The PSID follows members of its sample over time. One of the challenges of research on subsidized housing lies in the development of an accurate sample. Studies in the past have relied on self-reports by individuals in sample surveys, but these are subject to the inaccuracies of recall and confusion over the definition of "public housing."

In order to accurately identify public housing residents, Newman matched the PSID data with addresses of assisted (or subsidized) housing units obtained from the U.S. Department of Housing and Urban Development, state housing agencies, and other sources throughout the United States. This method makes the sample a unique and valuable resource for measuring the impact of public housing.

The study sample includes both those who lived in public housing at some point between the ages of 10 and 16, and those who were eligible but were unassisted between the ages of 10 and 16 during the period from 1968-1982. Adult outcomes from ages 20 to 27 cover the period from 1978 through 1993. The paper is available online at www.jhu.edu/ips/whatsnew/paper.html.

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