Working Paper: NBER ID: w28454
Authors: David J. Harding; Lisa Sanbonmatsu; Greg J. Duncan; Lisa A. Gennetian; Lawrence F. Katz; Ronald C. Kessler; Jeffrey R. Kling; Matthew Sciandra; Jens Ludwig
Abstract: Although non-experimental studies find robust neighborhood effects on adults, such findings have been challenged by results from the Moving to Opportunity (MTO) residential mobility experiment. Using a within-study comparison design, this paper compares experimental and non-experimental estimates from MTO and a parallel analysis of the Panel Study of Income Dynamics (PSID). Striking similarities were found between non-experimental estimates based on MTO and PSID. No clear evidence was found that different estimates are related to duration of adult exposure to disadvantaged neighborhoods, non-linear effects of neighborhood conditions, magnitude of the change in neighborhood context, frequency of moves, treatment effect heterogeneity, or measurement, although uncertainty bands around our estimates were sometimes large. One other possibility is that MTO-induced moves might have been unusually disruptive, but results are inconsistent for that hypothesis. Taken together, the findings suggest that selection bias might account for evidence of neighborhood effects on adult economic outcomes in non-experimental studies.
Keywords: Neighborhood Effects; Economic Outcomes; Experimental Studies; Nonexperimental Studies; Poverty; Inequality
JEL Codes: H0; I3; J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| neighborhood poverty (I32) | adult economic outcomes (J79) |
| neighborhood poverty (I32) | adult mental and physical health (I12) |
| selection bias (C24) | apparent neighborhood effects (R20) |
| MTO program (R48) | family outcomes (J13) |
| disruptive nature of MTO-induced moves (J62) | family outcomes (J13) |