Neighborhoods

Question 1

Residential sorting has equity implications

Answer 1

the idea that every child should be given the same chance to succeed
A child’s neighborhood may have a causal impact on the child’s adult outcomes

Question 2

Neighborhood Quality

Answer 2

based on a neighborhood’s causal impact on its residents
→ The treatment effect of growing up in a neighborhood
– (Does not try to tabulate all the public goods that a neighborhood has)

Question 3

Intergenerational Mobility

Answer 3

the difference between a child’s adult outcomes & the parent’s outcomes

OI calculates IGM compares a child’s adult income rank to the parents’ adult income rank

Question 4

Intergenerational Mobility concept

Answer 4

a simple and intuitive concept
→ captures how well a child does relative to the child’s parents

Question 5

ID’d instances where studying movers gives insight into causal effects

Answer 5

1. Exploited the Moving to Opportunity experiment
2. Studied children who are forced to move due to exogenous events
3. Devised a DiD where compare kids who move at dif. ages

Question 6

shrinkage estimator

Answer 6

A weighted avg. of the two quality measure
– Weights depend on the amount of noise in the causal estimates

Question 7

The strongest correlates of neighborhood quality are

Answer 7

1. Urban/suburban sprawl
2. Income inequality
3. Social capital
4. K-12 school quality
5. Segregation
6. Share of families with two parents

Question 8

OL findings

Answer 8

1. Across all metro areas, there is no reln. between nbrhd. quality and rents
2. Among the 30 largest metro areas, there is a strong + reln.
3. For census tracts within metro areas, there is a moderate correlation (0.44)
4. There are many opportunity bargains

Question 9

areas that have high value added

Answer 9

tend to have higher housing prices

Question 10

4 strategies for ensuring access to good neighborhoods

Answer 10

1. provide info on neighborhood quality
2. assist low-income households in moving to better neighborhoods
3. expand housing in good neighborhoods
4. invest in bad neighborhoods in the hopes of improving them