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Neighborhood effects and housing vouchers

Author

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  • Morris A. Davis
  • Jesse Gregory
  • Daniel A. Hartley
  • Kegon T. K. Tan

Abstract

Researchers and policy makers have explored the possibility of restricting the use of housing vouchers to neighborhoods that may positively affect the outcomes of children. Using the framework of a dynamic model of optimal location choice, we estimate preferences over neighborhoods of likely recipients of housing vouchers in Los Angeles. We combine simulations of the model with estimates of how locations affect adult earnings of children to understand how a voucher policy that restricts neighborhoods in which voucher‐recipients may live affects both the location decisions of households and the adult earnings of children. We show the model can nearly replicate the impact of the Moving to Opportunity experiment on the adult wages of children. Simulations suggest a policy that restricts housing vouchers to the top 20% of neighborhoods maximizes expected aggregate adult earnings of children of households offered these vouchers.

Suggested Citation

  • Morris A. Davis & Jesse Gregory & Daniel A. Hartley & Kegon T. K. Tan, 2021. "Neighborhood effects and housing vouchers," Quantitative Economics, Econometric Society, vol. 12(4), pages 1307-1346, November.
    • Handle: RePEc:wly:quante:v:12:y:2021:i:4:p:1307-1346
    DOI: 10.3982/QE1664
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    Cited by:

    1. Ning Zhang, 2022. "In-kind housing transfers and labor supply: a structural approach," Economics Series Working Papers 992, University of Oxford, Department of Economics.
    2. Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2023. "JUE Insight: City-wide effects of new housing supply: Evidence from moving chains," Journal of Urban Economics, Elsevier, vol. 133(C).
    3. Aliprantis, Dionissi & Martin, Hal & Phillips, David, 2022. "Landlords and access to opportunity," Journal of Urban Economics, Elsevier, vol. 129(C).
    4. Christian A. L. Hilber & Olivier Schoni, 2022. "Housing policy and affordable housing," CEP Occasional Papers 56, Centre for Economic Performance, LSE.
    5. Adrien Bilal & Esteban Rossi‐Hansberg, 2021. "Location as an Asset," Econometrica, Econometric Society, vol. 89(5), pages 2459-2495, September.
    6. Aaronson, Daniel & Faber, Jacob & Hartley, Daniel & Mazumder, Bhashkar & Sharkey, Patrick, 2021. "The long-run effects of the 1930s HOLC “redlining” maps on place-based measures of economic opportunity and socioeconomic success," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    7. Nathan Deutscher & Bhashkar Mazumder, 2023. "Measuring Intergenerational Income Mobility: A Synthesis of Approaches," Journal of Economic Literature, American Economic Association, vol. 61(3), pages 988-1036, September.
    8. Funk, Bryana & Amer, Saud A. & Ward, Frank A., 2023. "Sustainable aquifer management for food security," Agricultural Water Management, Elsevier, vol. 281(C).
    9. Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2021. "City-wide effects of new housing supply: Evidence from moving chains," Working Papers 146, VATT Institute for Economic Research.

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    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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