Evidence of Neighborhood Effects from MTO: LATEs of Neighborhood Quality

Aliprantis, Dionissi; Richter, Francisca

doi:10.26509/wp-201208r2

Cited by 8 publications

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“…Aliprantis and Richter (2014) is one example of neighborhood effects estimated under weaker assumptions than NQB and NQP in which the estimated effects contradict conclusion ( ⋆ ).…”

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confidence: 90%

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Assessing the evidence on neighborhood effects from Moving to Opportunity

Aliprantis

2017

Empir Econ

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The Moving to Opportunity (MTO) experiment randomly assigned housing vouchers that could be used in low-poverty neighborhoods. Consistent with the literature, I fi nd that receiving an MTO voucher had no effect on outcomes like earnings, employment, and test scores. However, after studying the assumptions identifying neighborhood effects with MTO data, this paper reaches a very different interpretation of these results than found in the literature. I fi rst specify a model in which the absence of effects from the MTO program implies an absence of neighborhood effects. I present theory and evidence against two key assumptions of this model: That poverty is the only determinant of neighborhood quality, and that outcomes only change across one threshold of neighborhood quality. I then show that in a more realistic model of neighborhood effects that relaxes these assumptions, the absence of effects from the MTO program is perfectly compatible with the presence of neighborhood effects. This analysis illustrates why the implicit identifi cation strategies used in the literature on MTO can be misleading.

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“…Aliprantis and Richter (2014) is one example of neighborhood effects estimated under weaker assumptions than NQB and NQP in which the estimated effects contradict conclusion ( ⋆ ).…”

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confidence: 90%

“…Aliprantis and Richter (2014) estimate the model under (A1-A6, EH, D2-NQJ-NQK). That analysis makes A2 more plausible by relaxing D2-NQJ-NQP to D2-NQJ-NQK, and allows for the identification and estimation of LATEs that are heterogeneous over unobservables by relaxing SI to EH.…”

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confidence: 99%

Assessing the evidence on neighborhood effects from Moving to Opportunity

Aliprantis

2017

Empir Econ

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“…Adults induced by the experiment to make larger changes in neighborhood conditions actually see improvements in labor market outcomes (Aliprantis and Richter, 2019;Pinto, 2019). All of this evidence implies that families with vouchers forgo economic benefits by leasing up in low-rent neighborhoods.…”

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confidence: 99%

“…Such neighborhood effects can combine with residential segregation to drive persistent racial inequity in economic opportunity (Wilson, 1997;Massey and Denton, 1993). Housing vouchers, which subsidize a share of private-market rent, can facilitate moves to opportunity neighborhoods and improve the later-in-life economic outcomes of children (Chetty et al, 2016;Chyn, 2018) and adults (Aliprantis and Richter, 2019). Housing vouchers' potential for generating moves to opportunity is typically unrealized, however, as most families with federally subsidized rental vouchers do not live in opportunity neighborhoods.…”

Section: Introductionmentioning

confidence: 99%

“…We followAliprantis and Richter (2019) and measure neighborhood quality as the first principal component of the poverty rate, the unemployment rate, the employed to population ratio, the share with a HS diploma, the share with a BA, and the share of families with children under 18 that are single-headed. Each of these variables is first put into percentiles of the national distribution (in terms of population living in census tracts with these characteristics).…”

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Landlords and Access to Opportunity

Aliprantis

Martin

Phillips

2019

Working Paper (Federal Reserve Bank of Cleveland)

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Despite being eligible for use in any neighborhood, housing choice vouchers tend to be redeemed in low-opportunity neighborhoods. This paper investigates how landlords contribute to this outcome and how they respond to efforts to change it. We leverage a policy change in Washington, DC, that increased voucher rental payments only in high-rent neighborhoods. Using two waves of a correspondence experiment that bracket the policy change, we show that most opportunity landlords screen out prospective voucher tenants, and we detect no change in average screening behavior after a $450 per month increase in voucher payments. In lease-up data, however, enough landlords do respond to increased payments to equalize the flow of voucher tenants into high-vs. lowrent neighborhoods. Using tax data and listings from a website specializing in subsidized housing, we characterize a group of marginal opportunity landlords who respond to higher payments. Marginal opportunity landlords are relatively rare, list their units near market rates, operate on a small scale, and negatively select into the voucher program based on hard-to-observe differences in unit quality.

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Human capital in the inner city

Aliprantis

2016

Empir Econ

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Evidence of Neighborhood Effects from MTO: LATEs of Neighborhood Quality

Cited by 8 publications

References 0 publications

Assessing the evidence on neighborhood effects from Moving to Opportunity

Assessing the evidence on neighborhood effects from Moving to Opportunity

Landlords and Access to Opportunity

Human capital in the inner city

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