scholarly journals Moved to Opportunity: The Long-Run Effects of Public Housing Demolition on Children

2018 ◽  
Vol 108 (10) ◽  
pp. 3028-3056 ◽  
Author(s):  
Eric Chyn

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. (JEL H75, I38, J13, R23, R38)

Author(s):  
Michael Lens

The Housing Choice Voucher (HCV) Program is the largest housing subsidy program in the United States, serving over 2.2 million households. Through the program, local public housing authorities (PHAs) provide funds to landlords on behalf of participating households, covering a portion of the household’s rent. Given the reliance on the private market, there are typically many more locational options for HCV households than for traditional public housing, which has a set (and declining) number of units and locations. The growth of this program has been robust in recent decades, adding nearly 1 million vouchers in the last 25 years. This has been a deliberate attempt to move away from the traditional public housing model toward one that emphasizes choice and a diversity of location outcomes through the HCV program. There are many reasons for these policy and programmatic shifts, but one is undoubtedly the high crime rates that came to be the norm in and near far too many public housing developments. During the mid-20th century, when the vast majority of public housing units were created, they were frequently sited in undesirable areas that offered few amenities and contained high proportions of low-income and minority households. As poverty further concentrated in central cities due to the flight of higher-income (often white) households to the suburbs, many public housing developments became increasingly dangerous places to live. The physical design of public housing developments was also frequently problematic, with entire city blocks being taken up by large high-rises set back from the street, standing out as areas to avoid within their neighborhoods. There are many quantitative summaries and anecdotal descriptions of the crime and violence present in some public housing developments from sources as diverse as journalists, housing researchers, and architects. Now that the shift to housing vouchers (and the low-income housing tax credit [LIHTC]) has been underway for over two decades, we have a good understanding of how effective these changes have been in reducing exposure to crime for subsidized households. Further, we are beginning to better understand the limitations of these efforts and why households are often unsuccessful in moving from high-crime areas. In studies of moving housing voucher households away from crime, the following questions are of particular interest: What is the connection between subsidized housing and crime? What mechanisms of the housing voucher program work to allow households to live in lower-crime neighborhoods than public housing? And finally, how successful has this program been in reducing participant exposure to crime, and how do we explain some of the limitations? While many aspects of the relationship between subsidized housing and crime are not well understood, existing research provides several important insights. First, we can conclude that traditional public housing—particularly large public housing developments—often concentrated crime to dangerously high levels. Second, we know that public housing residents commonly expressed great concern over the presence of crime and drugs in their communities, and this was a frequent motivation for participating in early studies of housing mobility programs such as Gautreaux in Chicago and the Moving to Opportunity experiment. Third, while the typical housing voucher household lives in a lower-crime environment than public housing households, they still live in relatively high-crime neighborhoods, and there is substantial research on the limited nature of moves using vouchers. Finally, while there is research on whether voucher households cause crime in the aggregate, the outcomes are rather ambiguous—some rigorous studies have found that clusters of voucher households increase neighborhood crime and some have found there is no effect. Furthermore, any potential effects on neighborhood crime by vouchers need to be weighed against their effectiveness at reducing exposure to neighborhood crime among subsidized households.


2016 ◽  
Vol 41 (03) ◽  
pp. 670-700
Author(s):  
John N. Robinson

Scholarship on welfare privatization illustrates how the process often curtails and undermines public responsibility for the poor. In this article, I examine how recipients, policy makers, and judges participate in the legal process as a means of challenging and defending privatization. I look at cases of litigation initiated by public housing tenants between 1985 and 2012 to fight the demolition of their homes to explore the changing meaning of public responsibility within a shrinking public sector. My findings show that as legislative and administrative reforms steered courts toward a more flexible understanding of public responsibility, courts gave increasing attention to the economic hardships experienced by the state itself, while downplaying the plight of low-income tenants.


2013 ◽  
Vol 73 (4) ◽  
pp. 978-1016 ◽  
Author(s):  
Katharine L. Shester

Between 1933 and 1973 the federal government funded the construction of over 1 million units of low-rent housing. Using county-level data, I find that communities with high densities of public housing had lower median family income, lower median property values, lower population density, and a higher percentage of families with low income in 1970. However, I find no negative effects of public housing in 1950 or 1960, implying that long-run negative effects only became apparent in the 1960s. The effects found in 1970 are partially due to a decline in human capital.


2020 ◽  
Vol 18 (6) ◽  
pp. 2922-2971
Author(s):  
Olivier Coibion ◽  
Yuriy Gorodnichenko ◽  
Marianna Kudlyak ◽  
John Mondragon

Abstract Using household-level debt data over 2000–2012 and local variation in inequality, we show that low-income households in high-inequality regions (zip codes, counties, states) accumulated less debt relative to their income than low-income households in lower inequality regions. We also find evidence that low-income households face higher credit prices and reduced access to credit as inequality increases. We argue that these patterns are consistent with inequality tilting credit supply away from low-income households and toward high-income households, which may have long-run implications for outcomes like homeownership or entrepreneurship.


2016 ◽  
Vol 1 (1) ◽  
pp. 13-22
Author(s):  
Towaf Totok Irawan

Until now the government and private sector have not been able to address the backlog of 13.5 million housing units for ownership status and 7.6 million units for residential status. The high price of land has led to the high price of the house so that low-income communities (MBR) is not able to reach out to make a home purchase. In addition to the high price of land, tax factors also contribute to the high price of the house. The government plans to issue a policy for the provision of tax incentives, ie abolish VAT on home-forming material transaction. This policy is expected to house prices become cheaper, so the demand for housing increases, and encourage the relevant sectors to intensify its role in the construction of houses. It is expected to replace the lost tax potential and increase incomes. Analysis of the impact of tax incentives housing to potential state revenue and an increase in people's income, especially in Papua province is using the table IO because in addition to looking at the role each sector can also see the impact on taxes (income tax 21 Pph 25 Pph, VAT), and incomes (wage). Although in the short-term impact is still small, but very rewarding in the long run. Keywords: Backlog, Gross Input, Primary Input, Intermediate Input


2021 ◽  
pp. 0044118X2199638
Author(s):  
Kendra Whitfield ◽  
Laura Betancur ◽  
Portia Miller ◽  
Elizabeth Votruba-Drzal

Longitudinal links between childhood family income and adult outcomes are well documented. However, research on childhood income volatility and young adult outcomes is limited. This study utilizes data from the NLSY ( N = 6,410) to examine how childhood family income and income volatility relate to socioeconomic outcomes and mental/behavioral health in emerging adulthood. Results show that lower childhood income was associated with young adult socioeconomic and behavioral health outcomes. Higher income volatility was associated with increased depression and teen parenthood during young adulthood. Additional analyses examining trajectories of income volatility illustrated that children in families with unstable income trajectories (i.e., frequent income losses and gains) showed higher depression scores than those with stable trajectories. These findings suggest that income volatility, not just income level or income loss, is important to consider when studying economic disparities in young adult outcomes. Implications for policies and programs for low-income, high-volatility households are discussed.


2021 ◽  
pp. 239965442110411
Author(s):  
Lauro Gonzalez ◽  
Fernanda Lima-Silva ◽  
Marlei Pozzebon

Research on street-level bureaucrats has examined the various ways in which these professionals have implemented public policies in areas such as healthcare, education, and security, often emphasizing the role played by discretion in the implementation process. Despite its importance, the concept of street-level bureaucracy has scarcely been approached by housing studies. This study focuses on the role of street-level workers in the delivery of public housing to the lower-income population. We affirm the value of complementing street-level discretion with the concept of proximity, a premise borrowed from the microfinance literature, to increase the understanding of the interactions and relationships established between street-level workers and policy recipients during the implementation process. Such complementarity may contribute to a more accurate understanding of the housing policy implementation dynamics on the street-level and the possible adjustments to meet local needs. To explore this issue, we used a theoretical lens inspired by Goffman’s frame analysis that points to the importance of relational mechanisms that characterize the interactions between street-level workers and beneficiaries. These lenses were applied to a collective case study of Minha Casa Minha Vida-Entidades, a Brazilian subprogram in which street-level workers linked to social housing movements assume a leading role in the planning and execution of interventions. The results indicate that the combination of proximity and discretion has a positive influence on the implementation of housing policies. Our analysis shows the existence of nonprofit-oriented arrangements that may present different features and nuances at the implementation (micro) level and contribute to the (macro) debate on housing policies.


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