Eric Chyn of University of Texas at Austin reviews “Savings and Trust: The Rise and Betrayal of the Freedman's Bank” by Justene Hill Edwards. The Econlit abstract of this book begins: “Chronicles the history of the Freedman's Bank from the perspective of the freed people who invested in the bank as depositors and the experiences of the bank's administrators, detailing how Black depositors' experiences with the bank, and the federal government's unwillingness to hold the perpetrators of its demise accountable, represented an under-explored aspect of the White racial violence that characterized Black people's lives during the Reconstruction and during the Gilded Age.”

This paper provides new evidence on the effects of moving out of disadvantaged neighborhoods on the long-run outcomes of children. I study public housing demolitions in Chicago, which forced low-income households to relocate to less disadvantaged neighborhoods using housing vouchers. Specifically, I compare young adult outcomes of displaced children to their peers who lived in nearby public housing that was not demolished. Displaced children are more likely to be employed and earn more in young adulthood. I also find that displaced children have fewer violent crime arrests. Children displaced at young ages have lower high school dropout rates.

Abstract How does one's childhood neighborhood shape political engagement later in life? We study voting rates of children who were displaced by public housing demolitions and moved to higher opportunity areas using housing vouchers. Those displaced during childhood had 11% (2 pp) higher participation in the 2016 Presidential election and were 10% (2.9 pp) more likely to vote in any general election. We argue that the results are unlikely to be driven by changes in incarceration or parental outcomes but rather by political socialization or improvements in education and earnings. These results suggest that housing assistance programs may reduce inequality in political participation.

This paper studies housing vouchers and urban redevelopment programs by incorporating neighborhood effects into a general equilibrium overlapping-generations model with endogenous location choice and child development. We calibrate the model using US data and estimate impacts of large-scale implementations of rental voucher and place-based subsidy policies. Our core finding is that vouchers generate long-run welfare gains by reducing inequality and generating skill improvements that offset higher taxation and other GE effects. Although vouchers lead to larger welfare gains on average, we find housing supply. (JEL D63, H24, J13, J24, R23, R31, R38)

ABSTRACT This article studies the effects of the largest residential racial desegregation initiative in U.S. history, the Gautreaux Assisted Housing Program. From the late 1970s to the 1990s, Gautreaux moved thousands of Black families into predominantly white neighborhoods to support racial and economic integration. We link historical program records to administrative data and use plausibly exogenous variation in neighborhood placements to study how desegregating moves affect children in the long run. Being placed in the predominantly white neighborhoods targeted by the program significantly increases children’s future lifetime earnings and wealth. These moves also increase the likelihood of marriage and particularly raise the probability of being married to a white spouse. Moreover, placements through Gautreaux affect neighborhood choices in adulthood. Those placed in predominantly white neighborhoods during childhood live in more racially diverse areas with higher rates of upward mobility nearly 40 years later.

This article provides empirical researchers with an introduction and guide to research designs based on variation in judge and examiner tendencies to administer treatments or other interventions. We review the basic theory behind this research design, outline the assumptions under which the design identifies causal effects, describe empirical tests of the conditions for identification, and discuss trade-offs associated with choices researchers must make for estimation. We demonstrate concepts and best practices in an empirical case study that uses an examiner tendency research design to study the effects of pretrial detention. (JEL C21, C26, K14, K41)

This paper measures impacts of removing children from families investigated for abuse or neglect. We use removal tendencies of child protection investigators as an instrument. We focus on young children investigated before age six and find that removal significantly increases test scores and reduces grade repetition for girls. There are no detectable impacts for boys. This pattern of results does not appear to be driven by heterogeneity in pre-removal characteristics, foster placements, or the type of schools attended after removal. The results are consistent with the hypothesis that development of abused and neglected girls is more responsive to home removal.

We study a simple savings scheme that allows workers to defer receipt of part of their wages for three months at zero interest. The scheme significantly increases savings during the deferral period, leading to higher postdisbursement spending on lumpy goods. Two years later, after two additional rounds of the savings scheme, we find that treated workers have made permanent improvements to their homes. The popularity of the scheme implies a lack of good alternative savings options. The results of a follow-up experiment suggest that demand for the scheme is partly due to its ability to address self-control issues. (JEL D91, G51, J31, O12, O13)