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Moving To Opportunity And Tranquility: Neighborhood Effects On Adult Economic Self-Sufficiency And Health From A Randomized Housing Voucher Experiment

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Author Info
Jeffrey R. Kling (Princeton University and NBER)
Jeffrey Liebman (Harvard University and NBER)
Lawrence F. Katz (Harvard University and NBER)
Lisa Sanbonmatsu (NBER)

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Abstract

We study adult economic and health outcomes in the Moving to Opportunity (MTO) demonstration, a randomized housing mobility experiment in which families living in highpoverty U.S. public housing projects in five cities were given vouchers to help them move to private housing units in lower-poverty neighborhoods. An ¡°experimental¡± group was offered vouchers valid only in a low-poverty neighborhood; a ¡°Section 8¡± group was offered traditional housing vouchers without geographic restriction; a control group was not offered vouchers. Our sample consists largely of black and Hispanic female household heads with children. Five years after random assignment, the families offered housing vouchers through MTO lived in safer neighborhoods that had significantly lower poverty rates than those of the control group not offered vouchers. However, we find no significant overall effects on adult employment, earnings, or public assistance receipt -- though our sample sizes are not sufficiently large to rule out moderate effects in either direction. In contrast, we do find significant mental health benefits of the MTO intervention for the experimental group. We also demonstrate a more general pattern for the mental health results using both treatment groups of systematically larger effect sizes for groups experiencing larger changes in neighborhood poverty rates. In our analysis of physical health outcomes, we find a significant reduction in obesity, but no significant effects on four other aspects of physical health (general health, asthma, physical limitations, and hypertension), and our summary measure of physical health was not significantly affected by the MTO treatment for the overall sample.

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File URL: http://www.irs.princeton.edu/pubs/pdfs/481.pdf
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File Function: First version, 2004
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Publisher Info
Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 5.

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Date of creation: Apr 2004
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Handle: RePEc:pri:indrel:5

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Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Brian A. Jacob, 2004. "Public Housing, Housing Vouchers, and Student Achievement: Evidence from Public Housing Demolitions in Chicago," American Economic Review, American Economic Association, vol. 94(1), pages 233-258, March. [Downloadable!] (restricted)
  2. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Holzer, Harry J & Katz, Lawrence F & Krueger, Alan B, 1991. "Job Queues and Wages," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 739-68, August. [Downloadable!] (restricted)
  4. Topa, Giorgio, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 68(2), pages 261-95, April.
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  5. Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics. [Downloadable!]
  6. Brock, William A. & Durlauf, Steven N., 2001. "Interactions-based models," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 54, pages 3297-3380 Elsevier. [Downloadable!] (restricted)
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  7. Patrick Bayer & Stephen Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," NBER Working Papers 11019, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving To Opportunity In Boston: Early Results Of A Randomized Mobility Experiment," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 607-654, May. [Downloadable!] (restricted)
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  9. Jeffrey R. Kling & Jeffrey B. Liebman, 2004. "Experimental Analysis Of Neighborhood Effects On Youth," Working Papers 249, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing.. [Downloadable!]
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  10. Lawrence Katz & Jeffrey R. Kling & Jens Ludwig, 2004. "Youth Criminal Behavior in the Moving to Opportunity Experiment," Working Papers 861, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  11. H. E. Frech III, 2003. "Introduction," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 10(2), pages 133-133, July. [Downloadable!] (restricted)
  12. 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. [Downloadable!]
  13. Imbens, Guido W & Rubin, Donald B, 1997. "Estimating Outcome Distributions for Compliers in Instrumental Variables Models," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 555-74, October. [Downloadable!] (restricted)
  14. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
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  15. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of psychiatric disorders on labor market outcomes," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(1), pages 64-81, October.
  16. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August. [Downloadable!] (restricted)
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  17. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Blackwell Publishing, vol. 60(3), pages 531-42, July. [Downloadable!] (restricted)
  18. Ludwig, Jens & Duncan, Greg J. & Pinkston, Joshua C., 2005. "Housing mobility programs and economic self-sufficiency: Evidence from a randomized experiment," Journal of Public Economics, Elsevier, vol. 89(1), pages 131-156, January. [Downloadable!] (restricted)
  19. Philip Oreopoulos, 2003. "The Long-Run Consequences Of Living In A Poor Neighborhood," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1533-1575, November. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lawrence Katz & Jeffrey R. Kling, 2004. "Beyond Treatment Effects: Estimating the Relationship Between Neighborhood Poverty and Individual Outcomes in the MTO Experiment," Working Papers 872, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  2. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz, 2005. "Experimental Analysis of Neighborhood Effects," NBER Working Papers 11577, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics. [Downloadable!]
    Other versions:
  4. Jacob L. Vigdor, 2007. "The Katrina Effect: Was There a Bright Side to the Evacuation of Greater New Orleans?," NBER Working Papers 13022, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Dan Lewis & Spyros Konstantopoulos & Lisa Altenbernd, 2005. "The Correlates of Work in a Post-AFDC World: The Results from a Longitudinal State-Level Analysis," IZA Discussion Papers 1626, Institute for the Study of Labor (IZA). [Downloadable!]
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