Dynamic Individuals, Static Neighborhoods: Migration and Earnings Changes in Poor Neighborhoods

Andrew Garin, Ethan Jenkins, Evan E. Mast and Bryan Stuart

No 35381, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Why do poor neighborhoods stay poor? Using administrative data linking residential histories to longitudinal earnings, we show that while many residents of poor neighborhoods have persistently low earnings and remain in concentrated poverty for extended periods, a large number also experience sizable earnings growth and move to richer areas. Estimates based on idiosyncratic, firm-specific pay changes show that part of this sorting is causal—earnings increases induce upward moves. On net, selective migration depresses the growth of poor neighbor-hoods’ average earnings by roughly 60 percent and represents an underappreciated driver of the persistence of concentrated poverty.

JEL-codes: J30 J61 R23 (search for similar items in EconPapers)
Date: 2026-06
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mig
Note: LS PE
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