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Creating Moves to Opportunity: Experimental Evidence on Barriers to Neighborhood Choice

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Listed:
  • Peter Bergman
  • Raj Chetty
  • Stefanie DeLuca
  • Nathaniel Hendren
  • Lawrence F. Katz
  • Christopher Palmer

Abstract

Low-income families often live in low-upward-mobility neighborhoods. We study why by using a randomized trial with housing voucher recipients that provided information, financial support, and customized search assistance to move to high-opportunity neighborhoods. The treatment increased the fraction moving to high-upward-mobility areas from 15 to 53 percent. A second trial reveals this treatment effect is driven primarily by customized search assistance. Qualitative interviews show that the intervention relaxed bandwidth constraints and addressed family-specific needs. Our findings imply many low-income families do not have strong preferences to stay in low-opportunity areas and that barriers in housing search significantly increase residential segregation by income.

Suggested Citation

  • Peter Bergman & Raj Chetty & Stefanie DeLuca & Nathaniel Hendren & Lawrence F. Katz & Christopher Palmer, 2024. "Creating Moves to Opportunity: Experimental Evidence on Barriers to Neighborhood Choice," American Economic Review, American Economic Association, vol. 114(5), pages 1281-1337, May.
    • Handle: RePEc:aea:aecrev:v:114:y:2024:i:5:p:1281-1337
    DOI: 10.1257/aer.20200407
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    References listed on IDEAS

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    1. 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.
    2. Eric Chyn, 2018. "Moved to Opportunity: The Long-Run Effects of Public Housing Demolition on Children," American Economic Review, American Economic Association, vol. 108(10), pages 3028-3056, October.
    3. Robert Collinson & Ingrid Gould Ellen & Jens Ludwig, 2015. "Low-Income Housing Policy," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 59-126, National Bureau of Economic Research, Inc.
    4. Matthew Desmond & Tracey Shollenberger, 2015. "Forced Displacement From Rental Housing: Prevalence and Neighborhood Consequences," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1751-1772, October.
    5. Jennifer Darrah & Stefanie DeLuca, 2014. "“Living Here has Changed My Whole Perspective”: How Escaping Inner‐City Poverty Shapes Neighborhood and Housing Choice," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(2), pages 350-384, March.
    6. Molly W. Metzger, 2014. "The Reconcentration of Poverty: Patterns of Housing Voucher Use, 2000 to 2008," Housing Policy Debate, Taylor & Francis Journals, vol. 24(3), pages 544-567, July.
    7. 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.
    8. Morris A. Davis & Jess Gregory & Daniel Hartley & Kegon T. K. Tan, 2017. "Neighborhood Choices, Neighborhood Effects and Housing Vouchers," Working Paper Series WP-2017-2, Federal Reserve Bank of Chicago.
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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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