Full Citation
Title: Marginal Neighborhood Effects from Moving to Opportunity
Citation Type: Working Paper
Publication Year: 2012
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Abstract: This paper estimates Marginal Treatment Effects (MTEs) of neighborhood quality from the Moving to Opportunity (MTO) housing mobility experiment in a model with multiple treatment levels. We propose and implement a new identification strategy that exploits the identification of the idiosyncratic component of an ordered choice model. Due to the limited changes in neighborhood quality induced by MTO, we only estimate MTEs of moving from the first to second decile of the national distribution of neighborhood quality. These MTEs are heterogeneous over observable characteristics: Labor market outcomes were affected most positively for individuals at the sites in which larger changes in neighborhood quality were induced by MTO. Estimated MTEs are also heterogeneous over unobservables, which we consider evidence in favor of selection occurring in a model with essential heterogeneity. Although there is not enough structure in our model to clearly interpret MTE heterogeneity, we discuss possible reasons for the surprising result that effects are best for those with characteristics that make them less likely to move without the program.
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Authors: Aliprantis, Dionissi; Richter, Francesca G.
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Publication Number: 12-08R
Institution: Federal Reserve Bank of Cleveland
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Publisher Location: Cleveland, Ohio
Data Collections: IPUMS USA, IPUMS NHGIS
Topics: Housing and Segregation, Poverty and Welfare, Race and Ethnicity
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