IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v102y2020i4p633-647.html
   My bibliography  Save this article

Evidence of Neighborhood Effects from Moving to Opportunity: Lates of Neighborhood Quality

Author

Listed:
  • Dionissi Aliprantis

    (Federal Reserve Bank of Cleveland)

  • Francisca G.-C. Richter

    (Case Western Reserve University)

Abstract

This paper estimates neighborhood effects on adult labor market outcomes using the Moving to Opportunity (MTO) housing mobility experiment. We propose and implement a new strategy for identifying transition-specific effects that exploits identification of the unobserved component of a neighborhood choice model. Estimated local average treatment effects (LATEs) are large, result from moves between the first and second deciles of the national distribution of neighborhood quality, and pertain to a subpopulation of nine percent of program participants.

Suggested Citation

  • Dionissi Aliprantis & Francisca G.-C. Richter, 2020. "Evidence of Neighborhood Effects from Moving to Opportunity: Lates of Neighborhood Quality," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 633-647, October.
    • Handle: RePEc:tpr:restat:v:102:y:2020:i:4:p:633-647
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest_a_00933
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Angus Deaton, 2010. "Instruments, Randomization, and Learning about Development," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 424-455, June.
    2. Bryan S. Graham, 2018. "Identifying and Estimating Neighborhood Effects," Journal of Economic Literature, American Economic Association, vol. 56(2), pages 450-500, June.
    3. Matthew A. Masten & Alexander Torgovitsky, 2016. "Identification of Instrumental Variable Correlated Random Coefficients Models," The Review of Economics and Statistics, MIT Press, vol. 98(5), pages 1001-1005, December.
    4. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1150-1196, December.
    5. Jens Ludwig & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Lisa Sanbonmatsu, 2013. "Long-Term Neighborhood Effects on Low-Income Families: Evidence from Moving to Opportunity," American Economic Review, American Economic Association, vol. 103(3), pages 226-231, May.
    6. Conrad Miller, 2018. "When Work Moves: Job Suburbanization and Black Employment," NBER Working Papers 24728, National Bureau of Economic Research, Inc.
    7. Dionissi Aliprantis & Daniel Kolliner, 2015. "Neighborhood Poverty and Quality in the Moving to Opportunity Experiment," Economic Commentary, Federal Reserve Bank of Cleveland, issue April.
    8. Alan Manning & Barbara Petrongolo, 2017. "How Local Are Labor Markets? Evidence from a Spatial Job Search Model," American Economic Review, American Economic Association, vol. 107(10), pages 2877-2907, October.
    9. John Goering, 2003. "The impacts of new neighborhoods on poor families: evaluating the policy implications of the moving to opportunity demonstration," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 113-140.
    10. Lisa Sanbonmatsu & Jeffrey R. Kling & Greg J. Duncan & Jeanne Brooks-Gunn, 2006. "Neighborhoods and Academic Achievement: Results from the Moving to Opportunity Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    11. Dionissi Aliprantis, 2013. "Human capital in the inner city," Working Papers (Old Series) 1302, Federal Reserve Bank of Cleveland.
    12. Katz, Lawrence & Duncan, Greg J. & Kling, Jeffrey R. & Kessler, Ronald C. & Ludwig, Jens & Sanbonmatsu, Lisa & Liebman, Jeffrey B., 2008. "What Can We Learn about Neighborhood Effects from the Moving to Opportunity Experiment?," Scholarly Articles 2766959, Harvard University Department of Economics.
    13. Eric Chyn & Joshua Hyman & Max Kapustin, 2019. "Housing Voucher Take‐Up and Labor Market Impacts," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(1), pages 65-98, January.
    14. Galster, George & Santiago, Anna & Stack, Lisa & Cutsinger, Jackie, 2016. "Neighborhood effects on secondary school performance of Latino and African American youth: Evidence from a natural experiment in Denver," Journal of Urban Economics, Elsevier, vol. 93(C), pages 30-48.
    15. Charles F. Manski, 2013. "Identification of treatment response with social interactions," Econometrics Journal, Royal Economic Society, vol. 16(1), pages 1-23, February.
    16. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    17. James J. Heckman & Sergio Urzua & Edward Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 389-432, August.
    18. Olivier Bargain & Kristian Orsini & Andreas Peichl, 2014. "Comparing Labor Supply Elasticities in Europe and the United States: New Results," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 723-838.
    19. Dionissi Aliprantis, 2011. "Assessing the evidence on neighborhood effects from moving to opportunity," Working Papers (Old Series) 1101, Federal Reserve Bank of Cleveland.
    20. Laurent Gobillon & Harris Selod, 2013. "Spatial Mismatch, Poverty and Vulnerable Populations," Post-Print halshs-00754821, HAL.
    21. Joseph G. Altonji & Richard K. Mansfield, 2018. "Estimating Group Effects Using Averages of Observables to Control for Sorting on Unobservables: School and Neighborhood Effects," American Economic Review, American Economic Association, vol. 108(10), pages 2902-2946, October.
    22. Zax, Jeffrey S & Kain, John F, 1996. "Moving to the Suburbs: Do Relocating Companies Leave Their Black Employees Behind?," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 472-504, July.
    23. Olivier Bargain & Kristian Orsini & Andreas Peichl, 2012. "Comparing Labor Supply Elasticities in Europe and the US: New Results," SOEPpapers on Multidisciplinary Panel Data Research 525, DIW Berlin, The German Socio-Economic Panel (SOEP).
    24. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    25. Martin Huber & Giovanni Mellace, 2015. "Testing Instrument Validity for LATE Identification Based on Inequality Moment Constraints," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 398-411, May.
    26. Currie, Janet & Yelowitz, Aaron, 2000. "Are public housing projects good for kids?," Journal of Public Economics, Elsevier, vol. 75(1), pages 99-124, January.
    27. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    28. Robert Collinson & Peter Ganong, 2018. "How Do Changes in Housing Voucher Design Affect Rent and Neighborhood Quality?," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 62-89, May.
    29. Aliprantis, Dionissi & Kolliner, Daniel, 2015. "Neighborhood Poverty and Quality in the Moving to Opportunity Experiment," Economic Commentary, Federal Reserve Bank of Cleveland, issue April.
    30. Bruce A. Weinberg & Patricia B. Reagan & Jeffrey J. Yankow, 2004. "Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 891-924, October.
    31. J. P. Florens & J. J. Heckman & C. Meghir & E. Vytlacil, 2008. "Identification of Treatment Effects Using Control Functions in Models With Continuous, Endogenous Treatment and Heterogeneous Effects," Econometrica, Econometric Society, vol. 76(5), pages 1191-1206, September.
    32. Fredrik Andersson & John C. Haltiwanger & Mark J. Kutzbach & Henry O. Pollakowski & Daniel H. Weinberg, 2018. "Job Displacement and the Duration of Joblessness: The Role of Spatial Mismatch," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 203-218, May.
    33. Phillips, David C., 2017. "Landlords avoid tenants who pay with vouchers," Economics Letters, Elsevier, vol. 151(C), pages 48-52.
    34. Sobel, Michael E., 2006. "What Do Randomized Studies of Housing Mobility Demonstrate?: Causal Inference in the Face of Interference," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 1398-1407, December.
    35. Christian N. Brinch & Magne Mogstad & Matthew Wiswall, 2017. "Beyond LATE with a Discrete Instrument," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 985-1039.
    36. Holzer, Harry J. & Reaser, Jess, 2000. "Black Applicants, Black Employees, and Urban Labor Market Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 365-387, November.
    37. Sebastian Galiani & Alvin Murphy & Juan Pantano, 2015. "Estimating Neighborhood Choice Models: Lessons from a Housing Assistance Experiment," American Economic Review, American Economic Association, vol. 105(11), pages 3385-3415, November.
    38. Shroder, Mark, 2002. "Locational Constraint, Housing Counseling, and Successful Lease-up in a Randomized Housing Voucher Experiment," Journal of Urban Economics, Elsevier, vol. 51(2), pages 315-338, March.
    39. Angrist, Joshua D., 2014. "The perils of peer effects," Labour Economics, Elsevier, vol. 30(C), pages 98-108.
    40. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521142373.
    41. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
    42. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521194204.
    43. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    44. Ellen, Ingrid Gould & Suher, Michael & Torrats-Espinosa, Gerard, 2019. "Neighbors and networks: The role of social interactions on the residential choices of housing choice voucher holders," Journal of Housing Economics, Elsevier, vol. 43(C), pages 56-71.
    45. Weinberg, Bruce A., 2000. "Black Residential Centralization and the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 48(1), pages 110-134, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dionissi Aliprantis & Hal Martin & Kristen Tauber, 2020. "What Determines the Success of Housing Mobility Programs?," Working Papers 20-36R, Federal Reserve Bank of Cleveland, revised 19 Oct 2022.
    2. Aliprantis, Dionissi & Martin, Hal & Phillips, David, 2022. "Landlords and access to opportunity," Journal of Urban Economics, Elsevier, vol. 129(C).
    3. David J. Harding & Lisa Sanbonmatsu & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Matthew Sciandra & Jens Ludwig, 2023. "Evaluating Contradictory Experimental and Nonexperimental Estimates of Neighborhood Effects on Economic Outcomes for Adults," Housing Policy Debate, Taylor & Francis Journals, vol. 33(2), pages 453-486, March.
    4. Fe, Hao, 2023. "Social networks and consumer behavior: Evidence from Yelp," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 1-14.
    5. Dionissi Aliprantis & Hal Martin, 2020. "Neighborhood Sorting Obscures Neighborhood Effects in the Opportunity Atlas," Working Papers 20-37, Federal Reserve Bank of Cleveland.
    6. Hyunjoo Eom, 2022. "Does Job Accessibility Matter in the Suburbs? Black Suburbia, Job Accessibility, and Employment Outcomes," Land, MDPI, vol. 11(11), pages 1-21, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dionissi Aliprantis & Kristen Tauber & Hal Martin, 2022. "What Determines the Success of Housing Mobility Programs?," Working Papers 2022-043, Human Capital and Economic Opportunity Working Group.
    2. Dionissi Aliprantis, 2011. "Assessing the evidence on neighborhood effects from moving to opportunity," Working Papers (Old Series) 1101, Federal Reserve Bank of Cleveland.
    3. Dionissi Aliprantis, 2017. "Assessing the evidence on neighborhood effects from Moving to Opportunity," Empirical Economics, Springer, vol. 52(3), pages 925-954, May.
    4. Aliprantis, Dionissi & Martin, Hal & Phillips, David, 2022. "Landlords and access to opportunity," Journal of Urban Economics, Elsevier, vol. 129(C).
    5. Dionissi Aliprantis & Hal Martin & Kristen Tauber, 2020. "What Determines the Success of Housing Mobility Programs?," Working Papers 20-36R, Federal Reserve Bank of Cleveland, revised 19 Oct 2022.
    6. Cassidy, Michael T., 2020. "A Closer Look: Proximity Boosts Homeless Student Performance in New York City," IZA Discussion Papers 13558, Institute of Labor Economics (IZA).
    7. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    8. Dionissi Aliprantis & Daniel R. Carroll, 2018. "Neighborhood dynamics and the distribution of opportunity," Quantitative Economics, Econometric Society, vol. 9(1), pages 247-303, March.
    9. Weinhardt, Felix, 2014. "Social housing, neighborhood quality and student performance," Journal of Urban Economics, Elsevier, vol. 82(C), pages 12-31.
    10. Breen, Richard & Ermisch, John, 2021. "Instrumental Variable Estimation in Demographic Studies: The LATE interpretation of the IV estimator with heterogenous effects," SocArXiv vx9m7, Center for Open Science.
    11. Gong, Jie & Lu, Yi & Xie, Huihua, 2020. "The average and distributional effects of teenage adversity on long-term health," Journal of Health Economics, Elsevier, vol. 71(C).
    12. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    13. Fletcher, Jason M. & Ross, Stephen L. & Zhang, Yuxiu, 2020. "The consequences of friendships: Evidence on the effect of social relationships in school on academic achievement," Journal of Urban Economics, Elsevier, vol. 116(C).
    14. Black, Dan A. & Joo, Joonhwi & LaLonde, Robert & Smith, Jeffrey A. & Taylor, Evan J., 2022. "Simple Tests for Selection: Learning More from Instrumental Variables," Labour Economics, Elsevier, vol. 79(C).
    15. Lea Eilers & Alfredo R. Paloyo & Peggy Bechara, 2022. "The effect of peer employment and neighborhood characteristics on individual employment," Empirical Economics, Springer, vol. 62(4), pages 1885-1908, April.
    16. Dionissi Aliprantis & Hal Martin & David Phillips, 2019. "Can Landlords Be Paid to Stop Avoiding Voucher Tenants?," Working Papers 19-02, Federal Reserve Bank of Cleveland.
    17. Bryan S. Graham, 2018. "Identifying and Estimating Neighborhood Effects," Journal of Economic Literature, American Economic Association, vol. 56(2), pages 450-500, June.
    18. Tarek Azzam & Michael Bates & David Fairris, 2019. "Do Learning Communities Increase First Year College Retention? Testing Sample Selection and External Validity of Randomized Control Trials," Working Papers 202002, University of California at Riverside, Department of Economics.
    19. Christian A. L. Hilber & Olivier Schoni, 2022. "Housing policy and affordable housing," CEP Occasional Papers 56, Centre for Economic Performance, LSE.
    20. Cody Cook & Pearl Z. Li & Ariel J. Binder, 2023. "Where to Build Affordable Housing? Evaluating the Tradeoffs of Location," Working Papers 23-62, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:102:y:2020:i:4:p:633-647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.