December 1, 2009
W09-8: This paper examines the impact of publicly provided housing unit on student achievement in the context of low income households of Chile. It differs from previous studies evaluating externalities of promoting homeownership by using a regression discontinuity approach in which the underlying assumptions required for a proper identification can be tested. Data taken three to six years after the provision of housing units suggest that the treatment increased by 0.39 years the level of education for the population under 25 years old. Among the mechanisms that could explain this phenomenon I find that three channels are triggered by the treatment. There is a cash transfer equivalent to the market value of the housing unit, there is a positive impact on the housing conditions of the beneficiaries, and the probability of being homeowner is 20% higher...
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