Neighborhood Effects and Housing Vouchers
Researchers and policy-makers have explored the possibility of restricting the use of housing vouchers to neighborhoods that may positively affect the outcomes of children. Using the framework of a dynamic model of optimal location choice, we estimate preferences over neighborhoods of likely recipients of housing vouchers in Los Angeles. We combine simulations of the model with estimates of how locations affect adult earnings of children to understand how a voucher policy that restricts neighborhoods in which voucher-recipients may live affects both the location decisions of households and the adult earnings of children. We show the model can nearly replicate the impact of the Moving to Opportunity experiment on the adult wages of children. Simulations suggest a policy that restricts housing vouchers to the top 20% of neighborhoods maximizes expected aggregate adult earnings of children of households offered these vouchers.
We thank numerous discussants and seminar participants for helpful comments. We gratefully acknowledge financial support from the National Science Foundation (grant SES-1629422). The views expressed herein are those of the authors and do not necessarily represent those of the Federal Reserve Bank of Chicago or the Federal Reserve System. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Morris A. Davis & Jesse Gregory & Daniel A. Hartley & Kegon T. K. Tan, 2021. "Neighborhood effects and housing vouchers," Quantitative Economics, Econometric Society, vol. 12(4), pages 1307-1346, November. citation courtesy of