About Research Events Centers Newsroom Currency of Ideas
 
Milken Institute | Research | Publications | Research Reports: Does Subsidized Housing Increase Homelessness? Testing the Dinkins Deluge Hypothesis
 Does Subsidized Housing Increase Homelessness? Testing the Dinkins Deluge Hypothesis
Does Subsidized Housing Increase Homelessness? Testing the Dinkins Deluge Hypothesis
Michael Cragg and Brendan O'Flaherty
March 22, 1998

Buy Printed Version $ 10.00

We study the incentives to enter and leave homeless shelters. After two years of decline, the number of homeless families in New York City's shelter system began rising again in Spring 1990 and continued to rise until it hit an all-time record high in Summer 1993. The conventional wisdom about why this happened is that a flood of new families were attracted into shelters by the Dinkins administration's aggressive policy of placement into subsidized housing.

We test the conventional wisdom and reject it.

Better prospects of subsidized housing increase flows into the shelter system, but this incentive effect is not nearly large enough to offset the first-order accounting effect - taking families out of the shelters reduces the number of families in them. Why then did the shelter system population grow after Spring 1990? A major part of the reason is that the city responded to conventional wisdom and slowed placement into subsidized housing.

Other major factors were the 1990 92 recession (which slowed self-initiated exits), falling real welfare benefits and NYCHA applications (which increased entries), and greater use of more attractive Tier II shelters instead of hotels.

 
Search All Publications
Paper or pixels?
2 ways to subscribe to
the Milken Institute Review
Download the app for
iPhone, iPad and Kindle

Buy new digital editions of our quarterly economics journal for $1.99, purchase back issues for 99 cents or get a year's subscription for $5.99. Access links to related video and other content.
Order a 1-year subscription
Receive hard copies for $59, a small price to pay for our edgy, accessible and expert take on the latest in economics.
About Us
  Careers
  Contact
  Download Annual Report
  FAQs
  Locations
  Our Team

Blog


Topics

Events
  Associates
  Conferences
  Global Conference
  State of the State
  Summits
  Atlanta / California / London
  Forums
  Labs
  Young Leaders

Experts
Newsroom
  Latest News
  News Videos
  Press Releases

Research
  Centers
    Asia
    California
    FasterCures
    Financial Markets
    Israel Center
    Public Health

Initiatives

Publications
  Books
  Financial Innovations Labs
  Milken Institute Review
   Amazon Apps
   App Store
  Research Reports
  Viewpoints
  Search All Publications
Support MI
  Associates
  Donate
  Sponsorships
  Strategic Partners

Follow Us
  @Twitter
  Facebook
  YouTube
  Google+
  LinkedIn
  iTunes U

Related Sites
  Partnering For Cures 2013
  Celebration of Science
  Chairman's Corner
  Melanoma Research Alliance
  FasterCures

©2014 Milken Institute