The Long-Run Effects of Neighborhood Change on Incumbent Families

78 Pages Posted: 8 Apr 2019

See all articles by Nathaniel Baum-Snow

Nathaniel Baum-Snow

University of Toronto - Rotman School of Management

Daniel A. Hartley

Federal Reserve Bank of Chicago

Kwan Ok Lee

National University of Singapore

Multiple version iconThere are 2 versions of this paper

Date Written: 2019

Abstract

A number of prominent studies examine the long-run effects of neighborhood attributes on children by leveraging variation in neighborhood exposure through household moves. How-ever, much neighborhood change comes in place rather than through moving. Using an urban economic geography model as a basis, this paper estimates the causal effects of changes in neighborhood attributes on long-run outcomes for incumbent children and households. For identification, we make use of quasi-random variation in 1990-2000 and 2000-2005 skill-specific labor demand shocks hitting each residential metro area census tract in the U.S. Our results indicate that children in suburban neighborhoods with a one standard deviation greater increase in the share of resident adults with a college degree experienced a 0.4 to 0.7 standard deviation improvement in credit outcomes 12-17 years later. Since parental outcomes are not affected, we interpret these results as operating through neighborhood effects. Finally, we provide evidence that most of the estimated effects operate through public schools.

Suggested Citation

Baum-Snow, Nathaniel and Hartley, Daniel A. and Lee, Kwan Ok, The Long-Run Effects of Neighborhood Change on Incumbent Families (2019). CESifo Working Paper No. 7577. Available at SSRN: https://ssrn.com/abstract=3367213

Nathaniel Baum-Snow (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Daniel A. Hartley

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

HOME PAGE: http://www.danielaaronhartley.com

Kwan Ok Lee

National University of Singapore ( email )

4 Architecture Drive
SDE1-03-03
Singapore, 117566
Singapore
+65 6516 6254 (Phone)
+65 6774 8684 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
29
Abstract Views
76
PlumX Metrics