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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Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing
January 2013
Working Paper Number:
CES-13-48RR
To date, research on the long-term effects of childhood participation in voucher-assisted and public housing has been limited by the lack of data and suitable identification strategies. We create a national level longitudinal data set that enables us to analyze how children's housing experiences affect adult earnings and incarceration rates. While naive estimates suggest there are substantial negative consequences to childhood participation in voucher assisted and public housing, this result appears to be driven largely by selection of households into housing assistance programs. To mitigate this source of bias, we employ household fixed-effects specifications that use only within-household (across-sibling) variation for identification. Compared to naive specifications, household fixed-effects estimates for earnings are universally more positive, and they suggest that there are positive and statistically significant benefits from childhood residence in assisted housing on young adult earnings for nearly all demographic groups. Childhood participation in assisted housing also reduces the likelihood of incarceration across all household race/ethnicity groups. Time spent in voucher-assisted or public housing is especially beneficial for females from non-Hispanic Black households, who experience substantial increases in expected earnings and lower incarceration rates.
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Creating High-Opportunity Neighborhoods: Evidence from the HOPE VI Program
January 2026
Working Paper Number:
CES-26-02
We study whether low-economic-mobility neighborhoods can be transformed into high-mobility areas by analyzing the HOPE VI program, which invested $17 billion to revitalize 262 distressed public housing developments. We estimate the program's impacts using a matched difference-in-differences design, comparing outcomes in revitalized developments to observably similar control developments using anonymized tax records. HOPE VI reduced neighborhood poverty rates by attracting higher-income families to revitalized neighborhoods, but had no causal impact on the earnings of adults living in public housing units. Children raised in revitalized public housing units earn more, are more likely to attend college, and are less likely to be incarcerated. Using a movers exposure design and sibling comparisons, we show that these improvements were driven by changes in neighborhoods' causal effects on children's outcomes. The improvements in neighborhood causal effects were driven in large part by changes in social interaction: HOPE VI increased interaction between public housing residents and peers in surrounding neighborhoods and increased earnings more for subgroups with higher-income peers. Many low-income families in the U.S. currently live in neighborhoods that are as socially isolated as the HOPE VI developments were prior to revitalization. We conclude that it is feasible to create high-opportunity neighborhoods and that connecting socially isolated areas to surrounding communities is a cost-effective approach to doing so.
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Neighborhood Revitalization and Residential Sorting
March 2024
Working Paper Number:
CES-24-12
The HOPE VI Revitalization program sought to transform high-poverty neighborhoods into mixed-income communities through the demolition of public housing projects and the construction of new housing. We use longitudinal administrative data to investigate how the program affected both neighborhoods and individual residential outcomes. In line with the stated objectives, we find that the program reduced poverty rates in targeted neighborhoods and enabled subsidized renters to live in lower-poverty neighborhoods, on average. The primary beneficiaries were not the original neighborhood residents, most of whom moved away. Instead, subsidized renters who moved into the neighborhoods after an award experienced the largest reductions in neighborhood poverty. The program reduced the stock of public housing in targeted neighborhoods but expanded access to housing vouchers in other, lower-poverty neighborhoods. Spillover effects on the poverty rates of other neighborhoods were small and dispersed throughout the city. Our estimates imply that cities that revitalized half of their public housing stock reduced the average neighborhood poverty rate among all subsidized renters by 4.1 percentage points.
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From Marcy to Madison Square? The Effects of Growing Up in Public Housing on Early Adulthood Outcomes
November 2024
Working Paper Number:
CES-24-67
This paper studies the effects of growing up in public housing in New York City on children's long-run outcomes. Using linked administrative data, we exploit variation in the age children move into public housing to estimate the effects of spending an additional year of childhood in public housing on a range of economic and social outcomes in early adulthood. We find that childhood exposure to public housing improves labor market outcomes and reduces participation in federal safety net programs, particularly for children from the most disadvantaged families. Additionally, we find there is some heterogeneity in impacts across public housing developments. Developments located in neighborhoods with relatively fewer renters and higher household incomes are better for children overall. Our estimate of the marginal value of public funds suggests that for every $1 the government spends per child on public housing, children receive $1.40 in benefits, including $2.30 for children from the most disadvantaged families.
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Employment and Earnings Trajectories of HUD Program Participants
May 2026
Working Paper Number:
CES-26-31
Federal housing assistance programs, such as those run by the U.S. Department of Housing and Urban Development (HUD), have been shown to reduce rent burden and improve housing stability for program participants, which may in turn have downstream impacts on their labor market attachment and career trajectories. However, existing studies from individual cities or states provide mixed evidence on the association of housing assistance with labor market outcomes. By linking HUD administrative records to matched employee-employer earnings records from the Longitudinal Employer-Household Dynamics (LEHD) program, we document how the labor market trajectories of program participants change as they enter and exit federal housing assistance programs, examining outcomes over a 14-year window surrounding entry or exit. In our analysis of entry, we find that the employment rates and earnings of first-time HUD program participants begin to increase upon entering a HUD program, which represents a reversal of prior declining trends in these outcomes. Suggestive of a positive association, these increases in employment and earnings trends exceed those of low-income non-participants from the American Community Survey (ACS). In our analysis of exits, we find that program participants who eventually leave a HUD program have increasing pre-exit trends in employment and earnings that then flatten upon exiting. Comparing these negative changes in trend to the relatively stable trajectories of those who remain in HUD programs throughout the analysis suggests that exits are associated with diminished employment and earnings trajectories.
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The Effect of Low-Income Housing on Neighborhood Mobility:
Evidence from Linked Micro-Data
May 2016
Working Paper Number:
carra-2016-02
While subsidized low-income housing construction provides affordable living conditions for poor households, many observers worry that building low-income housing in poor communities induces individuals to move to poor neighborhoods. We examine this issue using detailed, nationally representative microdata constructed from linked decennial censuses. Our analysis exploits exogenous variation in low-income housing supply induced by program eligibility rules for Low-Income Housing Tax Credits to estimate the effect of subsidized housing on neighborhood mobility patterns. The results indicate little evidence to suggest a causal effect of additional low-income housing construction on the characteristics of neighborhoods to which households move. This result is true for households across the income distribution, and supports the hypothesis that subsidized housing provides affordable living conditions without encouraging households to move to less-affluent neighborhoods than they would have otherwise.
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Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes
October 2005
Working Paper Number:
CES-05-23
We use a novel dataset and research design to empirically detect the effect of social interactions among neighbors on labor market outcomes. Specifically, using Census data that characterize residential and employment locations down to the city block, we examine whether individuals residing in the same block are more likely to work together than those in nearby blocks. We find evidence of significant social interactions operating at the block level: residing on the same versus nearby blocks increases the probability of working together by over 33 percent. The results also indicate that this referral effect is stronger when individuals are similar in sociodemographic characteristics (e.g., both have children of similar ages) and when at least one individual is well attached to the labor market. These findings are robust across various specifications intended to address concerns related to sorting and reverse causation. Further, having determined the characteristics of a pair of individuals that lead to an especially strong referral effect, we provide evidence that the increased availability of neighborhood referrals has a significant impact on a wide range of labor market outcomes including employment and wages.
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School Accountability and Residential Location Patterns: Evaluating the Unintended Consequences of No Child Left Behind
January 2017
Working Paper Number:
CES-17-28
The 2002 to 2015 No Child Left Behind (NCLB) Act is often considered the most significant federal intervention into education in the United States since 1965 with the passage of the Elementary and Secondary Education Act. There is growing evidence that holding schools accountable is leading to some improved educational outcomes for students. There is in contrast very little work examining whether these sweeping reforms have unintended consequences for the communities which these schools are serving. As school attendance, particularly at the elementary school level, is closely tied to one's residence, placing sanctions on a school could have negative repercussions for neighborhoods if it provides new information on school failure. In contrast, if these sanctions also bring new resources, including financial resources or school choice, they could spark additional demand within a neighborhood. Through the use of restricted access census data, which includes local housing values, rents and individual residential choices in combination with the use of a boundary discontinuity identification strategy, this paper seeks to examine how failure to meet Adequate Yearly Progress (AYP), the key enforcement mechanism of NCLB, is shaping local housing markets and residential choices in five diverse urban school districts: New York, Los Angeles, Philadelphia, Detroit and Tucson.
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The Impact of Expanding Public Health Insurance on Safety Net Program Participation: Evidence From the ACA Medicaid Expansion
May 2026
Working Paper Number:
CES-26-32
We examine spillover effects from the ACA Medicaid expansion to public programs providing cash and food assistance. We consider program participation in contiguous county pairs crossing state borders, where one state took up the Medicaid expansion and the other did not, allowing us to better control for local economic trends that could affect program participation. We find that the Medicaid expansion increased participation in food assistance and one of the cash programs, with impacts mainly due to participation conditional on eligibility, rather than from labor supply responses. Our results demonstrate the potential for spillovers across safety net programs.
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The Opportunity Atlas: Mapping the Childhood Roots of Social Mobility
September 2018
Working Paper Number:
CES-18-42R
We construct a publicly available atlas of children's outcomes in adulthood by Census tract using anonymized longitudinal data covering nearly the entire U.S. population. For each tract, we estimate children's earnings distributions, incarceration rates, and other outcomes in adulthood by parental income, race, and gender. These estimates allow us to trace the roots of outcomes such as poverty and incarceration back to the neighborhoods in which children grew up. We find that children's outcomes vary sharply across nearby tracts: for children of parents at the 25th percentile of the income distribution, the standard deviation of mean household income at age 35 is $4,200 across tracts within counties. We illustrate how these tract-level data can provide insight into how neighborhoods shape the development of human capital and support local economic policy using two applications. First, we show that the estimates permit precise targeting of policies to improve economic opportunity by uncovering specific neighborhoods where certain subgroups of children grow up to have poor outcomes. Neighborhoods matter at a very granular level: conditional on characteristics such as poverty rates in a child's own Census tract, characteristics of tracts that are one mile away have little predictive power for a child's outcomes. Our historical estimates are informative predictors of outcomes even for children growing up today because neighborhood conditions are relatively stable over time. Second, we show that the observational estimates are highly predictive of neighborhoods' causal effects, based on a comparison to data from the Moving to Opportunity experiment and a quasi-experimental research design analyzing movers' outcomes. We then identify high-opportunity neighborhoods that are affordable to low-income families, providing an input into the design of affordable housing policies. Our measures of children's long-term outcomes are only weakly correlated with traditional proxies for local economic success such as rates of job growth, showing that the conditions that create greater upward mobility are not necessarily the same as those that lead to productive labor markets.
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