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Neighborhood Effects on Economic Self-Sufficiency: Evidence from a Randomized Housing-Mobility Experiment

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  • Jens Otto Ludwig
  • Greg Duncan
  • Joshua C. Pinkston

Abstract

This paper examines whether residence within high-poverty urban neighborhoods affects individual economic outcomes. Our data are generated by a randomized housing-mobility experiment, with measures of economic self-sufficiency taken from state administrative records. We find that providing low-income families living in public housing units with private-market rental subsidies that can only be redeemed in very low-poverty neighborhoods reduces rates of welfare use by around 15 percent. Most of this reduction appears to be explained by differences in welfare-to-work transitions. We also find that providing families with unrestricted housing vouchers has little effect on economic outcomes beyond the first year. To download a Brookings Institution policy brief of this paper, please visit the Brookings Institution's site.

Suggested Citation

  • Jens Otto Ludwig & Greg Duncan & Joshua C. Pinkston, 2000. "Neighborhood Effects on Economic Self-Sufficiency: Evidence from a Randomized Housing-Mobility Experiment," JCPR Working Papers 159, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:159
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    Cited by:

    1. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.
    2. Dominique Goux & Eric Maurin, 2007. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," Economic Journal, Royal Economic Society, vol. 117(523), pages 1193-1215, October.
    3. David I. Levine & Gary Painter, 2003. "Are Measured School Effects Just Sorting?," Working Paper 8619, USC Lusk Center for Real Estate.
    4. Krauth, Brian V., 2004. "A dynamic model of job networking and social influences on employment," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1185-1204, March.
    5. George Galster & Roger Andersson & Sako Musterd, 2010. "Who Is Affected by Neighbourhood Income Mix? Gender, Age, Family, Employment and Income Differences," Urban Studies, Urban Studies Journal Limited, vol. 47(14), pages 2915-2944, December.
    6. Levine, David I. & Painter, Gary, 2008. "Are measured school effects just sorting?: Causality and correlation in the National Education Longitudinal Survey," Economics of Education Review, Elsevier, vol. 27(4), pages 460-470, August.
    7. Thomas J. Nechyba & Randall P. Walsh, 2004. "Urban Sprawl," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 177-200, Fall.
    8. Anne R. Pebley & Narayan Sastry, 2003. "Neighborhoods, Poverty and Children's Well-being: A Review," Working Papers 03-04, RAND Corporation.
    9. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
    10. George Galster & Roger Andersson & Sako Musterd, 2015. "Are Males' Incomes Influenced by the Income Mix of Their Male Neighbors? Explorations into Nonlinear and Threshold Effects in Stockholm," Housing Studies, Taylor & Francis Journals, vol. 30(2), pages 315-343, March.
    11. Lapar, Ma. Lucila A. & Holloway, Garth J. & Ehui, Simeon K., 2003. "How Big Is Your Neighborhood? Spatial Implications Of Market Participation By Smallholder Livestock Producers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25860, International Association of Agricultural Economists.

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