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

Author

Listed:
  • John C. Haltiwanger
  • Mark J. Kutzbach
  • Giordano E. Palloni
  • Henry Pollakowski
  • Matthew Staiger
  • Daniel 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 E. Palloni & Henry Pollakowski & Matthew Staiger & Daniel Weinberg, 2020. "The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes," NBER Working Papers 28157, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28157
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    Cited by:

    1. Dauth, Wolfgang & Mense, Andreas & Wrede, Matthias, 2024. "Affordable Housing and Individual Labor Market Outcomes," IZA Discussion Papers 17359, IZA Network @ LISER.
    2. 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.
    3. Raj Chetty & Rebecca Diamond & Thomas B. Foster & Lawrence F. Katz & Sonya Porter & Matthew Staiger & Laura Tach, 2026. "Creating High-Opportunity Neighborhoods: Evidence from the HOPE VI Program," NBER Working Papers 34720, National Bureau of Economic Research, Inc.
    4. 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.
    5. Matthias Wrede, 2024. "Housing Cooperatives, Housing Affordability, and Rent Control," CESifo Working Paper Series 11452, CESifo.
    6. Adamson Bryant, 2025. "Place-Based Policies for Neighborhood Improvement: Evidence from Promise Zones," Papers 2503.05946, arXiv.org.

    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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