The effects of social housing regeneration schemes on employment: The case of the Glasgow Stock Transfer

Abstract

Regeneration is an internationally popular policy for improving distressed neighbourhoods dominated by large social housing developments. Stimulating employment is often touted as a secondary benefit, but this claim has rarely been evaluated convincingly. In 2003, Glasgow City Council transferred ownership of its entire social housing stock to the Glasgow Housing Association and over £4 billion was invested in physical repairs, social services and other regeneration activities. Using a linked census database of individuals (Scottish Longitudinal Study), we evaluate the causal effect of the Stock Transfer on employment in Glasgow through a quasi-experimental design that exploits idiosyncrasies and changes in Glasgow’s administrative boundaries. We find that the Stock Transfer had a positive effect on employment for Glasgow residents who were not living in transferred social housing stock. We establish that this effect was mainly accomplished through the local employment multiplier effect of capital spending rather than through any other programmatic elements of the Stock Transfer. Exploratory analysis shows heterogeneous effects: individuals who were over 21, female, living with dependent children and with less education were less likely to benefit from the intervention. We did not find significant subgroup effects by neighbourhood deprivation.