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Evidence of Neighborhood Effects from Moving to Opportunity: LATEs of Neighborhood Quality


This paper estimates neighborhood effects on adult labor market outcomes using the Moving to Opportunity (MTO) housing mobility experiment. We propose and implement a new strategy for identifying transition-specific effects that exploits identification of the unobserved component of a neighborhood choice model. Estimated Local Average Treatment Effects (LATEs) are large, result from moves between the first and second deciles of the national distribution of neighborhood quality, and pertain to a subpopulation of nine percent of program participants.

JEL Classification Codes: C31, C36, C50, D04, I38, R23.
Keywords: Neighborhood Effect, Local Average Treatment Effect, Moving to Opportunity.


Suggested citation: Aliprantis, Dionissi, and Francisca G.-C. Richter, 2019. “Evidence of Neighborhood Effects from Moving to Opportunity: LATEs of Neighborhood Quality,” Federal Reserve Bank of Cleveland Working Paper no. 12-08R3. https://doi.org/10.26509/frbc-wp-201208r3.

This is the author’s final version of the article. It has been accepted for publication in The Review of Economics and Statistics.

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