Homeownership and School Outcomes of Children: Evidence from Psid Child Supplement Data

Using the PSID Child Supplement and PSID main datasets, we examine whether homeownership has positive effects on child outcomes after correcting for selectivity bias and controlling for the independent effects of home environment, neighborhood quality, residential stability, and income. After correcting for selectivity bias we find no independent effect of homeownership, but we noted positive, significant effects of home environment and neighborhood quality on child outcomes. Subsidized homeownership can lead to better child outcomes to the extent that it places a child in a better home environment, in a more stable residence, and in a better neighborhood.