Read the only the introduction of the following paper (up until page 6.5):
Chetty, Raj, Nathaniel Hendren, and Lawrence F. Katz. “The effects of exposure to better neighborhoods on children: New evidence from the Moving to Opportunity experiment.” American Economic Review 106, no. 4 (2016): 855-902. Found here: https://www.nber.org/papers/w21156.pdf
Then answer the following prompt and upload it to iLearn by 8:00 AM on Tuesday, March 2nd:
Previous research on the Moving to Opportunity experiment did not show positive effects from living in a better neighborhood. What is different about this study, relative to the previous studies, that likely explains why?
*Note: The paper talks a lot about two subsidized housing programs that I would like to define for you before you read it. The goal of both of these programs is to reduce rent burden for low-income families.
Housing Projects: Housing/apartments that are constructed and managed by the government. The units are available to qualified low-income households for below-market rents.
Housing Vouchers: A program that allows a qualified low-income household to choose their own apartment and the government will pay a portion of their rent to reduce their housing costs.
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