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Working Paper

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

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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.

This version has been published in The Review of Economics and Statistics.

Topics
Neighborhood quality
Economic mobility
12.13.2019ISSN 2573-7953 WP 12-08R3Original Paper WP 12-08Revisions WP 12-08R1, WP 12-08R2DOI 10.26509/frbc-wp-201208r3
Keywords neighborhood effect, local average treatment effect, moving to opportunity
JEL Classification Codes C31, C36, C50, D04, I38, R23

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Aliprantis, Dionissi, and Francisca García-Cobián 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