Neighborhood Effects and Housing Vouchers

Morris Davis, Jesse M. Gregory, Daniel Hartley and Kegon Tan

No 28508, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: I24 I31 I38 J13 R23 R38 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-cmp, nep-lab and nep-ure
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Citations: View citations in EconPapers (7)

Published as 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.

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Journal Article: Neighborhood effects and housing vouchers (2021)
Working Paper: Neighborhood Effects and Housing Vouchers (2019)
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