The Negative and Persistent Impact of Social Housing on Employment

Social renters are known to have lower residential mobility rates and to experience lower supply rates of job opportunities than other tenants. This may have negative and lasting consequences on the labour market. We test whether social housing could be contribute to the dynamics of unemployment. We put forward an original model on the joint dynamics of individual home and labor market positions estimated with UK panel data. We provide evidence of signiÖcant crossed-state dependence e§ects (i.e., the labor market a§ecting home tenure and vice versa). In the medium term, about 20% of the gap in the probabilities of being employed between initially employed and unemployed household heads, both private tenants, can be explained by a transition to social housing