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Evaluating Contradictory Experimental and Non-Experimental Estimates of Neighborhood Effects on Economic Outcomes for Adults

Author

Listed:
  • 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.

Suggested Citation

  • David J. Harding & Lisa Sanbonmatsu & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Matthew Sciandra & Jens Ludwig, 2021. "Evaluating Contradictory Experimental and Non-Experimental Estimates of Neighborhood Effects on Economic Outcomes for Adults," NBER Working Papers 28454, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28454
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    Cited by:

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    2. Hu, Jinhua & Mu, Fan & Jiang, Xinling & Wu, Zhong'an & Olasehinde, Toba & Fan, Yubing & Wang, Tong, 2024. "Herders’ willingness to adopt Climate-Smart Grassland Agriculture: Evidence from the Qilian Mountain region of Northwestern China," 2024 Annual Meeting, July 28-30, New Orleans, LA 343634, Agricultural and Applied Economics Association.
    3. Belchior, Carlos Alberto & Gonzaga, Gustavo & Ulyssea, Gabriel, 2023. "Unpacking Neighborhood Effects: Experimental Evidence from a Large-Scale Housing Program in Brazil," IZA Discussion Papers 16113, Institute of Labor Economics (IZA).
    4. Austin, Wes & Figlio, David & Goldhaber, Dan & Hanushek, Eric A. & Kilbride, Tara & Koedel, Cory & Sean Lee, Jaeseok & Lou, Jin & Özek, Umut & Parsons, Eric & Rivkin, Steven G. & Sass, Tim R. & Strunk, 2023. "Academic mobility in U.S. public schools: Evidence from nearly 3 million students," Journal of Public Economics, Elsevier, vol. 228(C).
    5. Sandher, Jeevun, 2022. "Familiar Faces, Worn Out Places: The Effect of Personal and Place Prosperity On Well-Being," SocArXiv am6gq, Center for Open Science.

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    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J0 - Labor and Demographic Economics - - General

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