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Evaluating Contradictory Experimental and Nonexperimental Estimates of Neighborhood Effects on Economic Outcomes for Adults

Author

Listed:
  • David J. Harding
  • Lisa Sanbonmatsu
  • Greg J. Duncan
  • Lisa A. Gennetian
  • Lawrence F. Katz
  • Ronald C. Kessler
  • Jeffrey R. Kling
  • Matthew Sciandra
  • Jens Ludwig

Abstract

Although nonexperimental studies find robust neighborhood effects on adults, such findings have been challenged by results from the Moving to Opportunity (MTO) residential mobility experiment. Using a within-study comparison design, this article compares experimental and nonexperimental estimates from MTO and a parallel analysis of the Panel Study of Income Dynamics (PSID). Striking similarities were found between nonexperimental estimates based on MTO and PSID. No clear evidence was found that different estimates are related to duration of adult exposure to disadvantaged neighborhoods, nonlinear effects of neighborhood conditions, magnitude of the change in neighborhood context, frequency of moves, treatment effect heterogeneity, or measurement, although the uncertainty bands around our estimates were sometimes large. Another possibility is that MTO-induced moves might have been unusually disruptive, but results are inconsistent for that hypothesis. Taken together, the findings suggest that selection bias might account for evidence of neighborhood effects on adult economic outcomes in nonexperimental studies.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:houspd:v:33:y:2023:i:2:p:453-486
    DOI: 10.1080/10511482.2021.1881985
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    Cited by:

    1. Jo Blanden & Matthias Doepke & Jan Stuhler, 2022. "Education inequality," CEP Discussion Papers dp1849, Centre for Economic Performance, LSE.
    2. Belchior, Carlos Alberto & Gonzaga, Gustavo & Ulyssea, Gabriel, 2023. "Unpacking Neighborhood Effects: Experimental Evidence from a Large-Scale Housing Program in Brazil," IZA Discussion Papers 16113, Institute of Labor Economics (IZA).
    3. repec:osf:socarx:am6gq_v1 is not listed on IDEAS
    4. Hu, Jinhua & Mu, Fan & Jiang, Xinling & Wu, Zhong'an & Olasehinde, Toba & Fan, Yubing & Wang, Tong, 2024. "Herders’ willingness to adopt Climate-Smart Grassland Agriculture: Evidence from the Qilian Mountain region of Northwestern China," 2024 Annual Meeting, July 28-30, New Orleans, LA 343634, Agricultural and Applied Economics Association.
    5. Austin, Wes & Figlio, David & Goldhaber, Dan & Hanushek, Eric A. & Kilbride, Tara & Koedel, Cory & Sean Lee, Jaeseok & Lou, Jin & Özek, Umut & Parsons, Eric & Rivkin, Steven G. & Sass, Tim R. & Strunk, 2023. "Academic mobility in U.S. public schools: Evidence from nearly 3 million students," Journal of Public Economics, Elsevier, vol. 228(C).
    6. Sandher, Jeevun, 2022. "Familiar Faces, Worn Out Places: The Effect of Personal and Place Prosperity On Well-Being," SocArXiv am6gq, Center for Open Science.
    7. repec:ags:aaea22:343634 is not listed on IDEAS

    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J0 - Labor and Demographic Economics - - General

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