Evidence of Neighborhood Effects from Moving to Opportunity: LATEs of Neighborhood Quality
38 Pages Posted: 31 Mar 2012 Last revised: 14 Dec 2019
Date Written: December 13, 2019
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.
Keywords: Neighborhood Effect, Local Average Treatment Effect, Moving to Opportunity
JEL Classification: C31, C36, C50, D04, I38, R23
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