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Neighborhood Effects on Economic Self-Sufficiency: Evidence from a Randomized Housing-Mobility Experiment

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Author Info
Jens Otto Ludwig
Greg Duncan
Joshua C. Pinkston

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Abstract

This paper examines whether residence within high-poverty urban neighborhoods affects individual economic outcomes. Our data are generated by a randomized housing-mobility experiment, with measures of economic self-sufficiency taken from state administrative records. We find that providing low-income families living in public housing units with private-market rental subsidies that can only be redeemed in very low-poverty neighborhoods reduces rates of welfare use by around 15 percent. Most of this reduction appears to be explained by differences in welfare-to-work transitions. We also find that providing families with unrestricted housing vouchers has little effect on economic outcomes beyond the first year.

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Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 159.

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Date of creation: 14 Feb 2000
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Handle: RePEc:wop:jopovw:159

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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. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-76, March. [Downloadable!] (restricted)
  2. Ihlanfeldt Keith R., 1993. "Intra-urban Job Accessibility and Hispanic Youth Employment Rates," Journal of Urban Economics, Elsevier, vol. 33(2), pages 254-271, March. [Downloadable!] (restricted)
  3. John Quigley, 2006. "A Decent Home: Housing Policy in Perspective," Berkeley Program on Housing and Urban Policy, Working Paper Series 1038, Berkeley Program on Housing and Urban Policy. [Downloadable!]
  4. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  5. Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, vol. 43(1), pages 79-111, January. [Downloadable!] (restricted)
  6. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. J. K. Scholz, . "The earned income tax credit: Participation, compliance, and antipoverty effectiveness," Institute for Research on Poverty Discussion Papers 1020-93, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  8. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-52, June. [Downloadable!] (restricted)
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  9. Topa, Giorgio, 1997. "Social Interactions, Local Spillovers and Unemployment," Working Papers 97-17, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
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  10. 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)
  11. David T. Ellwood, 1986. "The Spatial Mismatch Hypothesis: Are There Teenage Jobs Missing in the Ghetto?," NBER Chapters, in: The Black Youth Employment Crisis, pages 147-190 National Bureau of Economic Research, Inc. [Downloadable!]
  12. Edwin S. Mills & Luan Sende Lubuele, 1997. "Inner Cities," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 727-756, June. [Downloadable!] (restricted)
  13. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
  14. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, vol. 24(4), pages 135-143, June. [Downloadable!] (restricted)
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  1. Lapar, Ma. Lucila A. & Holloway, Garth & Ehui, Simeon, 2003. "How Big Is Your Neighborhood? Spatial Implications Of Market Participation By Smallholder Livestock Producers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25860, International Association of Agricultural Economists. [Downloadable!]
  2. 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, revised Jan 2009. [Downloadable!]
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