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The Children of HOPE VI Demolitions: National Evidence on Labor Market Outcomes

November 2020

Abstract

We combine national administrative data on earnings and participation in subsidized housing to study how the demolition of 160 public housing projects'funded by the HOPE VI program'affected the adult labor market outcomes for 18,500 children. Our empirical strategy compares children exposed to the program to children drawn from thousands of non-demolished projects, adjusting for observable differences using a flexible estimator that combines features of matching and regression. We find that children who resided in HOPE VI projects earn 14% more at age 26 relative to children in comparable non-HOPE VI projects. These earnings gains are strongest for demolitions in large cities, particularly in neighborhoods with higher pre-demolition poverty rates and lower pre-demolition job accessibility. There is no evidence that the labor market gains are driven by improvements in household or neighborhood environments that promote human capital development in children. Rather, subsequent improvements in job accessibility represent a likely pathway for the results.

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estimating, employ, incentive, disadvantaged, funding, welfare, housing, residential, relocation, poverty, neighborhood, home, earn, apartment, rent, renter, child

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American Economic Association, Bureau of Labor Statistics, National Science Foundation, Ordinary Least Squares, Decennial Census, Housing and Urban Development, Department of Housing and Urban Development, American Community Survey, Alfred P Sloan Foundation, Longitudinal Employer Household Dynamics, Russell Sage Foundation, Protected Identification Key, Composite Person Record, Office of Personnel Management, Census Bureau Disclosure Review Board, Integrated Public Use Microdata Series, Disclosure Review Board, Indian Health Service, Indian Housing Information Center, Federal Statistical Research Data Center

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