Housing Allowances and Forced Moves
Résumé
This paper analyses the impact of housing allowances on the ability of households
to sustain their dwelling. Means-tested benefits may fail to shelter households
from hardship when parameters are underindexed for inflation, when adjustments
of benefits to changing situations take too long or are insufficient, or when the
benefits have inflationary effects on rent levels. Using evidence from the national
French Housing Survey (INSEE), based on probit models, the determinants of
threats of forced moves are assessed both for housing allowance recipients and
for non-recipients. We conclude that even if housing allowances are effective
in overcoming unaffordability, they do not entirely shield recipient households
from forced moves. A completely effective policy that aims to ensure the ‘right
to housing’ would reduce the risk of forced moves for recipient households to
the risk level experienced by non-recipient households – a very difficult, if not
impossible, objective. However, our results show, encouragingly, that the risk
of forced moves for housing allowance recipients is nearly reduced to that of
non-recipients.