Abstract

The correlation between poor quality housing and children's physical health has been well documented. Yet a limitation of the literature is the prevalence of selection bias and comparatively little evidence on children's mental health outcomes. This study explored the role of housing (and neighbourhood) quality in explaining differences in childhood mental and physical health between those living in social-rented flats and houses. The social housing allocation process mitigated unobserved differences across the two groups addressing some of the issues of endogenous selection, although stopping short of representing causal identification. Poorer housing quality explained over 50% of the 0.18 standard deviation deficit in the mental health of children in flats compared with houses, with primary mediators being damp and mould, home temperature, and mother's perception of her own home, but played no role in explaining physical health deficits of children in flats. In contrast, neighbourhood quality did not account for any of the mental and physical health deficits observed. Taken together, the present study adds to the evidence that the home environment of children in social housing is related to their development, whilst taking us beyond the existing literature in terms of accounting for selection bias.

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