A new study by the Harvard economists Raj Chetty and Nathaniel Hendren, when read in combination with an important study they wrote with Lawrence Katz, makes the most compelling case to date that good neighborhoods nurture success. (The Upshot has just published a package of articles and interactives on the study.)
Let me be upfront about my own reading: These two new studies
are the most powerful demonstration yet that neighborhoods — their
schools, community, neighbors, local amenities, economic opportunities
and social norms — are a critical factor shaping your children’s
outcomes. It’s an intuitive idea, although the earlier evidence for it
had been surprisingly thin. As Sean Reardon, a professor of education
and sociology at Stanford, said of the study, “I think it will change
some of the discussion around how where children grows up matters.”
The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Project
Abstract:
The Moving to Opportunity (MTO) experiment
offered randomly selected families living in high-poverty housing
projects housing vouchers to move to lower-poverty neighborhoods. We
present new evidence on the impacts of MTO on children's long-term
outcomes using administrative data from tax returns. We find that moving
to a lower-poverty neighborhood significantly improves college
attendance rates and earnings for children who were young (below age 13)
when their families moved. These children also live in better
neighborhoods themselves as adults and are less likely to become single
parents. The treatment effects are substantial: children whose families
take up an experimental voucher to move to a lower-poverty area when
they are less than 13 years old have an annual income that is $3,477
(31%) higher on average relative to a mean of $11,270 in the control
group in their mid-twenties. In contrast, the same moves have, if
anything, negative long-term impacts on children who are more than 13
years old when their families move, perhaps because of disruption
effects. The gains from moving fall with the age when children move,
consistent with recent evidence that the duration of exposure to a
better environment during childhood is a key determinant of an
individual's long-term outcomes. The findings imply that offering
families with young children living in high-poverty housing projects
vouchers to move to lower-poverty neighborhoods may reduce the
intergenerational persistence of poverty and ultimately generate
positive returns for taxpayers.
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