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Local average neighborhood effects from moving to opportunity

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  • Dionissi Aliprantis
  • Francisca Richter

Abstract

This paper estimates Local Average Treatment Effects (LATEs) of neighborhood quality from the Moving to Opportunity (MTO) housing mobility experiment in a generalized model with multiple treatment levels. We propose a new approach to identifying parameters that exploits the identification of unobservables in the multi-level model. The variation in neighborhood quality induced by MTO only allows us to identify LATEs of moving from the first to the second decile of the national distribution of quality, but in other applications the approach may allow for the estimation of Marginal Treatment Effects. Estimated LATEs on employment, labor force participation rates, earnings, income, welfare receipt, and body mass index are consistent with standard theories of neighborhood externalities.

Suggested Citation

  • Dionissi Aliprantis & Francisca Richter, 2012. "Local average neighborhood effects from moving to opportunity," Working Papers (Old Series) 1208, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:1208
    DOI: 10.26509/frbc-wp-201208
    Note: First version posted March 2012 under the title “Local Average Neighborhood Effects from Moving to Opportunity.” A revision posted in October 2012 was titled “Marginal Neighborhood Effects from Moving to Opportunity.”
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    References listed on IDEAS

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    1. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, May.
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    3. John Goering, 2003. "The impacts of new neighborhoods on poor families: evaluating the policy implications of the moving to opportunity demonstration," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 113-140.
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    7. Dionissi Aliprantis, 2017. "Assessing the evidence on neighborhood effects from Moving to Opportunity," Empirical Economics, Springer, vol. 52(3), pages 925-954, May.
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    1. Dionissi Aliprantis, 2017. "Assessing the evidence on neighborhood effects from Moving to Opportunity," Empirical Economics, Springer, vol. 52(3), pages 925-954, May.

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    Keywords

    Housing policy; Econometric models; Poverty;
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