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Neighborhood Effects and Housing Vouchers

Author

Listed:
  • 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 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, 2019. "Neighborhood Effects and Housing Vouchers," Working Papers 2019-084, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2019-084
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Davis_Gregory_etal_2019_neighborhood-effects-housing-vouchers.pdf
    File Function: First version, December 14, 2019
    Download Restriction: no

    More about this item

    Keywords

    neighborhood choice; housing vouchers; Los Angeles; Moving to Opportunity; dynamic models;

    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

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