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cover of episode Moving to the American dream? (update)

Moving to the American dream? (update)

2024/11/6
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Planet Money

Key Insights

Why did the federal government conduct the Moving to Opportunity experiment?

The federal government aimed to test if housing policy could improve economic outcomes like jobs, earnings, and education by moving people from high-poverty to low-poverty neighborhoods.

What unexpected results did the Moving to Opportunity experiment yield?

The experiment found that moving to low-poverty neighborhoods did not significantly improve long-term employment, educational, or income outcomes for families, contrary to initial expectations.

How did Nathan Hendren's analysis of tax data change the understanding of the Moving to Opportunity experiment?

Hendren's analysis revealed that moving to better neighborhoods significantly improved economic outcomes for children who moved before the age of thirteen, contradicting the earlier findings that showed no significant impact.

What role did social capital play in the latest findings about economic mobility?

Social capital, particularly the interaction between low and high-income individuals in a community, emerged as a strong predictor of economic mobility, influencing outcomes more than just resource availability.

How has the economic mobility gap between rich and poor changed over time?

The gap has narrowed for some subgroups, like low-income black families, who now have slightly better chances of rising economically. However, low-income white communities have seen worse chances compared to the past.

What is the most effective way to improve opportunity for a child from a poor family according to the latest research?

Moving to a higher-opportunity area is still considered the most powerful way to improve economic prospects for a child from a poor family, according to the research.

Chapters

The episode revisits a federal experiment from the 90s that gave people vouchers to move out of high-poverty neighborhoods into low-poverty ones, aiming to test if housing policy could improve jobs, earnings, and education.
  • The experiment involved three groups: a control group, a group with regular vouchers, and an experimental group with vouchers to move to low-poverty neighborhoods.
  • The initial results were surprising, showing no significant impact on long-term housing, employment, or educational achievements.

Shownotes Transcript

Back in the 90s, the federal government ran a bold experiment, giving people vouchers to move out of high-poverty neighborhoods into low-poverty ones. They wanted to test if housing policy could be hope – whether an address change alone could improve jobs, earnings and education.The answer to that seems obvious. But it did not at all turn out as they expected.Years later, when new researchers went back to the data on this experiment, they stumbled on something big. Something that is changing housing policy across the country today.*Today's episode was originally hosted by Karen Duffin, produced by Aviva DeKornfeld, and edited by Bryant Urstadt. The update was hosted by Amanda Aronczyk, produced by Sean Saldana and fact checked by Sierra Juarez. Our supervising executive producer is Alex Goldmark.Help support Planet Money and hear our bonus episodes by subscribing to Planet Money+ in Apple Podcasts) or at plus.npr.org/planetmoney).*Learn more about sponsor message choices: podcastchoices.com/adchoices)NPR Privacy Policy)