Long-Term Neighborhood Effects on Low-Income Families: Evidence from Moving to Opportunity

Working Paper: NBER ID: w18772

Authors: Jens Ludwig; Greg J. Duncan; Lisa A. Gennetian; Lawrence F. Katz; Ronald C. Kessler; Jeffrey R. Kling; Lisa Sanbonmatsu

Abstract: We examine long-term neighborhood effects on low-income families using data from the Moving to Opportunity (MTO) randomized housing-mobility experiment, which offered some public-housing families but not others the chance to move to less-disadvantaged neighborhoods. We show that 10-15 years after baseline MTO improves adult physical and mental health; has no detectable effect on economic outcomes, youth schooling and youth physical health; and mixed results by gender on other youth outcomes, with girls doing better on some measures and boys doing worse. Despite the somewhat mixed pattern of impacts on traditional behavioral outcomes, MTO moves substantially improve adult subjective well-being.

Keywords: neighborhood effects; housing mobility; low-income families; health outcomes; economic outcomes

JEL Codes: H43; I18; I38; J38

Causal Claims

Cause	Effect
Moving to less disadvantaged neighborhoods through the MTO program (R23)	significant improvements in adult physical health outcomes (I12)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	significant improvements in adult mental health outcomes (I12)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	reduction of extreme obesity (BMI ≥ 40) (I14)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	reduction in the prevalence of diabetes (I14)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	enhancement of subjective wellbeing (SWB) (I31)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	no consistent detectable impacts on economic self-sufficiency (F69)
Moving to less disadvantaged neighborhoods through the MTO program (R23)	mixed results for youth outcomes (I24)