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The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes

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  • John C. Haltiwanger
  • Mark J. Kutzbach
  • Giordano Palloni
  • Henry O. Pollakowski
  • Matthew Staiger
  • Daniel H. Weinberg

Abstract

We combine national administrative data on earnings and participation in subsidized housing to study how the demolition of 160 public housing projects—funded by the HOPE VI program—affected the adult labor market outcomes for 18,500 children. Our empirical strategy compares children exposed to the program to children drawn from thousands of non-demolished projects, adjusting for observable differences using a flexible estimator that combines features of matching and regression. We find that children who resided in HOPE VI projects earn 14% more at age 26 relative to children in comparable non-HOPE VI projects. These earnings gains are strongest for demolitions in large cities, particularly in neighborhoods with higher pre-demolition poverty rates and lower pre-demolition job accessibility. There is no evidence that the labor market gains are driven by improvements in household or neighborhood environments that promote human capital development in children. Rather, subsequent improvements in job accessibility represent a likely pathway for the results.

Suggested Citation

  • John C. Haltiwanger & Mark J. Kutzbach & Giordano Palloni & Henry O. Pollakowski & Matthew Staiger & Daniel H. Weinberg, 2020. "The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes," Working Papers 20-39, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:20-39
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    Cited by:

    1. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    2. Dauth, Wolfgang & Mense, Andreas & Wrede, Matthias, 2024. "Affordable Housing and Individual Labor Market Outcomes," IZA Discussion Papers 17359, Institute of Labor Economics (IZA).
    3. Raheem Chaudhry & Amanda Eng, 2024. "From Marcy to Madison Square? The Effects of Growing Up in Public Housing on Early Adulthood Outcomes," Working Papers 24-67, Center for Economic Studies, U.S. Census Bureau.
    4. Matthias Wrede, 2024. "Housing Cooperatives, Housing Affordability, and Rent Control," CESifo Working Paper Series 11452, CESifo.

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    More about this item

    JEL classification:

    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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