Economic and Noneconomic Factors Influencing Geographic Differentials in Homelessness: An Exploratory State‐Level Analysis

In this exploratory state‐level empirical study for the United States, the authors estimate a pooled time‐series/cross‐section framework, with control variables for population size and population growth, for the years 2015–2016. Within this context, the least squares estimates lead to the following tentative findings: (1) homelessness is positively associated with the overall cost of living, on the one hand, and the average rent level, on the other hand; (2) homelessness appears to be an increasing function of the percent of the population without a high school diploma but a decreasing function of the percent of the population with a bachelor’s degree or a higher level of formal education; (3) homelessness is a decreasing function of labor market freedoms reflecting the degree of union density and union power, on the one hand, and excessive government employment beyond that needed solely for productive and protective services, on the other hand; (4) homelessness is positively associated with personal freedom from incarceration and arrest; and (5) homelessness is negatively associated with income, as higher income reduces homelessness. Based on these findings, preliminary policy implications are also provided.