NBER WORKING PAPER SERIES THE EFFECTS OF EXPOSURE TO BETTER NEIGHBORHOODS ON CHILDREN: NEW EVIDENCE FROM THE MOVING TO OPPORTUNITY EXPERIMENT
NBER WORKING PAPER SERIES THE EFFECTS OF EXPOSURE TO BETTER NEIGHBORHOODS ON CHILDREN: NEW EVIDENCE FROM THE MOVING TO OPPORTUNITY EXPERIMENT
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发表时间:
2015
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通讯作者:
Raj Chetty;Nathaniel Hendren;Lawrence Katz
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作者:
Raj Chetty;Nathaniel Hendren;Lawrence Katz
The Moving to Opportunity (MTO) experiment offered randomly selected families living in highpoverty housing projects housing vouchers to move to lower-poverty neighborhoods. We present new evidence on the impacts of MTO on children's long-term outcomes using administrative data from tax returns. We find that moving to a lower-poverty neighborhood significantly improves college attendance rates and earnings for children who were young (below age 13) when their families moved. These children also live in better neighborhoods themselves as adults and are less likely to become single parents. The treatment effects are substantial: children whose families take up an experimental voucher to move to a lower-poverty area when they are less than 13 years old have an annual income that is $3,477 (31%) higher on average relative to a mean of $11,270 in the control group in their mid-twenties. In contrast, the same moves have, if anything, negative long-term impacts on children who are more than 13 years old when their families move, perhaps because of the disruption effects of moving to a very different environment. The gains from moving fall with the age when children move, consistent with recent evidence that the duration of exposure to a better environment during childhood is a key determinant of an individual's long-term outcomes. The findings imply that offering vouchers to move to lower-poverty neighborhoods to families with young children who are living in highpoverty housing projects may reduce the intergenerational persistence of poverty and ultimately generate positive returns for taxpayers. Raj Chetty Department of Economics Harvard University 1805 Cambridge St. Cambridge, MA 02138 and NBER chetty@fas.harvard.edu Nathaniel Hendren Harvard University Department of Economics Littauer Center Room 235 Cambridge, MA 02138 and NBER nhendren@gmail.com Lawrence F. Katz Department of Economics Harvard University Cambridge, MA 02138 and NBER lkatz@harvard.edu Individuals who live in high-poverty areas fare worse than those who live in lower-poverty neighborhoods on a wide range of economic, health, and educational outcomes.1 Motivated by such disparities in outcomes across neighborhoods, the Moving to Opportunity (MTO) experiment of the U.S. Department of Housing and Urban Development offered a randomly selected subset of families living in high-poverty housing projects subsidized housing vouchers to move to lower-poverty neighborhoods in the mid-1990s. The MTO experiment generated large differences in neighborhood environments for comparable families, providing an opportunity to evaluate the causal effects of improving neighborhood environments for low-income families (Ludwig et al. 2013). Previous research evaluating the MTO experiment has found that moving to lower-poverty areas greatly improved the mental health, physical health, and subjective well being of adults as well as family safety (e.g., Katz et al. 2001, Kling et al. 2007, Clampet-Lundquist and Massey 2008, Ludwig et al. 2013). But these studies have consistently found that the MTO treatments had no significant impacts on the earnings and employment rates of adults and older youth, suggesting that neighborhood environments might be less important for economic success. In this paper, we revisit the MTO experiment and focus on its long-term impacts on children who were young when their families moved to better neighborhoods. Our analysis is motivated by recent evidence that the amount of time individuals spend in a given neighborhood during their childhood is a key determinant of that neighborhood’s effects on their long-term outcomes.2 Crowder and South (2011) and Wodtke et al. (2011) show that the fraction of childhood spent in high-poverty areas is negatively correlated with outcomes such as high-school completion. Chetty and Hendren (2015) study more than five million families that move across areas and find that neighborhoods have causal exposure effects on children’s outcomes using quasi-experimental methods. In particular, every year spent in a better area during childhood increases college attendance rates and earnings in adulthood, so the gains from moving to a better area are larger for children who are younger at the time of the move. In light of this evidence on childhood exposure effects, we test two hypotheses in the MTO data. First, we hypothesize that moving to a lower-poverty area improves long-term economic outcomes for children who were young at the point of random assignment (RA). Second, we hypothesize that the gains from moving to a lower-poverty area decline with a child’s age at move. Prior work has See, for example, Jencks and Mayer (1990), Brooks-Gunn et al. (1993), Cutler and Glaeser (1997), Leventhal and Brooks-Gunn (2000), and Sampson et al. (2002). The idea that the length of exposure to neighborhoods might matter has been recognized since Wilson (1987) and Jencks and Mayer (1990). Importantly, we focus here on exposure effects during childhood ; as we discuss below, we find no evidence of exposure effects for adults.