The Impacts of Housing Welfare Policy on the Labor Supply: Focusing on the Public Rental Housing Program and Housing Allowance Program

This study examines the effect of Public Rental Housing Program and Housing Allowance Program on the labor market outcomes including labor participation and household wages. We hypothesize that both public rental housing and housing allowances significantly impact labor market outcome. Utilizing data from the Korea Welfare Panel Study (KWPS), the study adopts Propensity Score Matching(PSM)method to compare the labor supply elasticity between public and private rental households as well as between recipients and non-recipients of the housing allowance program. The results indicate that the public rental housing program has the insignificant effects on household labor market outcomes, while the housing allowance policy negatively affects the labor market outcomes. Thus the findings suggest a policy implication to design specific employment matching programs based on the Housing Allowance Program for households.