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American Economic Review Vol. 114 No. 5 2024

Creating Moves to Opportunity: Experimental Evidence on Barriers to Neighborhood Choice

Peter Bergman1; Raj Chetty2; Stefanie DeLuca3; Nathaniel Hendren4; Lawrence F. Katz2; Christopher Palmer4

1 University of Texas at Austin and NBER (email: ) · 2 Harvard University and NBER (email: ) · 3 Johns Hopkins University (email: ) · 4 Massachusetts Institute of Technology and NBER (email: )

Abstract

Low-income families often live in low-upward-mobility neighborhoods. We study why by using a randomized trial with housing voucher recipients that provided information, financial support, and customized search assistance to move to high-opportunity neighborhoods. The treatment increased the fraction moving to high-upward-mobility areas from 15 to 53 percent. A second trial reveals this treatment effect is driven primarily by customized search assistance. Qualitative interviews show that the intervention relaxed bandwidth constraints and addressed family-specific needs. Our findings imply many low-income families do not have strong preferences to stay in low-opportunity areas and that barriers in housing search significantly increase residential segregation by income.

DOI
10.1257/aer.20200407
Volume
114
Issue
5
Pages
1281-1337
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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