The Children of Hope Vi Demolitions: National Evidence on Labor Market Outcomes

52 Pages Posted: 1 Dec 2020 Last revised: 9 Jun 2022

See all articles by John Haltiwanger

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Mark J. Kutzbach

Federal Deposit Insurance Corporation

Giordano Palloni

affiliation not provided to SSRN

Henry Pollakowski

Harvard University - Harvard Graduate School of Design

Matthew Staiger

University of Maryland - College Park

Daniel H. Weinberg

DHW Consulting

Date Written: November 2020

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

Haltiwanger, John C. and Kutzbach, Mark J. and Palloni, Giordano and Pollakowski, Henry O. and Staiger, Matthew and Weinberg, Daniel H., The Children of Hope Vi Demolitions: National Evidence on Labor Market Outcomes (November 2020). NBER Working Paper No. w28157, Available at SSRN: https://ssrn.com/abstract=3739654

John C. Haltiwanger (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Mark J. Kutzbach

Federal Deposit Insurance Corporation ( email )

550 17th Street NW
Washington, DC 20006

Giordano Palloni

affiliation not provided to SSRN

Henry O. Pollakowski

Harvard University - Harvard Graduate School of Design ( email )

48 Quincy Street
Gund Hall
Cambridge, MA 02138
United States

Matthew Staiger

University of Maryland - College Park ( email )

College Park, MD 20742
United States

Daniel H. Weinberg

DHW Consulting ( email )

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