Creating Moves to Opportunity
The Creating Moves to Opportunity (CMTO) project is an ongoing collaboration between J-PAL-affiliated researchers and public housing authorities (PHAs) to introduce and evaluate interventions to “create moves to opportunity” for low-income families.
Although the US spends $20 billion annually on the Housing Choice Voucher program, more than 80 percent of vouchers are used in moderate- or high-poverty neighborhoods. Supported by J-PAL North America, MDRC, non-profit housing practitioners, housing advocates, foundations, and government partners, researchers and public housing authorities are working together to test programs designed to help families who receive Housing Choice Vouchers move to higher opportunity neighborhoods.
A wave of emerging research following the Moving to Opportunity experiment provides new evidence that growing up in a high-poverty neighborhood has a negative effect on a number of important life outcomes, while helping families move to lower-poverty neighborhoods improves long-term outcomes for their children, thereby promoting upward mobility.
Long-term analysis of the Moving to Opportunity (MTO) experiment finds that young children (under age 13) whose families were randomly provided vouchers to move from high-poverty housing projects to lower-poverty neighborhoods earned substantially more in adulthood, were more likely to attend college, attended higher-quality colleges on average, and were less likely to become single parents. Chetty and Hendren find that every year a child spends growing up in a better neighborhood improves their outcomes in adulthood, including earnings and college attendance.
The importance of place for upward economic mobility suggests at least two policy approaches: (1) improve low-opportunity neighborhoods, and (2) help families with young children move to high-opportunity neighborhoods. Though all partners in the CMTO effort recognize and remain committed to improving America’s most disadvantaged neighborhoods, CMTO focuses on the second approach by developing and evaluating potential interventions to facilitate long-lasting moves to opportunity through the Housing Choice Voucher program, particularly for families with young children.
The public housing authorities and researchers have identified four broad categories of potential interventions to help facilitate opportunity moves:
- Improving information quality in the housing search process
- Providing comprehensive mobility services
- Removing barriers and providing incentives to landlords and tenants
- Removing apartment search frictions through Project-Based Vouchers
The primary purpose of this project is to understand how to facilitate moves to better neighborhoods. As such, the two primary outcomes of interest to the research team are 1) the number of moves to opportunity neighborhoods made by families, particularly those with younger children, and 2) how long families stay in those neighborhoods.
Watch Greg Russ, then Cambridge Housing Authority Executive Director, and
J-PAL North America Scientific Director Larry Katz talk about the genesis of CMTO.
Seattle-King County CMTO Demonstration Project
The Seattle Housing Authority and King County Housing Authority are taking part in the Seattle-King County CMTO demonstration project to test several of the intervention ideas. The first phase of research will involve providing multiple incentives to both voucher recipients and landlords. Select Housing Choice Voucher recipients will be offered rental broker assistance, marketability counseling, and flexible financial assistance to help cover moving expenses if the family elects to conduct their housing search in a high-opportunity neighborhood. Participating landlords will be offered incentives to lease to voucher holders, which include an insurance fund for damages and an expedited lease-up and inspection process. A second phase of research will further refine which aspects of mobility support have the greatest potential for helping families move. Through this research, the team also plans to explore the impact of historical place-based policies to better identify potential place-based interventions.
Informing and Nudging Families to Opportunity
This project will add neighborhood quality information onto housing listings on the GoSection8 website, the largest provider of housing listings available to housing voucher recipients, and will conduct outreach to landlords to increase the number of listed units in high-opportunity neighborhoods. Researchers will evaluate how introducing information on neighborhood quality impacts demand for listings on the web and mobile sites, and whether increased outreach to landlords increases the supply of listings in higher opportunity neighborhoods available to voucher-holders. This research will be conducted by randomly selecting users of the GoSection8 platform and partnering with several PHAs to do outreach to landlords.
Read a more detailed summary of this evaluation.
DEFINING OPPORTUNITY NEIGHBORHOODS
For this project, de-identified tax data will be used to develop outcome-based measures of opportunity neighborhoods. Opportunity neighborhoods are those that produce high levels of economic mobility for children, as measured by income in adulthood. The research team has demarcated opportunity areas at the county level and is working to zoom in to the census tract level. By identifying neighborhood characteristics that are associated with economic mobility, they will be able to generate forecasts of opportunity measures using existing data. These forecasts will be used to define opportunity neighborhoods in the interventions and can also be used to conduct formal cost-benefit analyses after the evaluation, by comparing the cost of the intervention to the predicted increase in adult earnings as the result of a move.
This research is being conducted by the Opportunity Insights team.
Participating Public Housing Authorities include Seattle, Tacoma, and King County, Washington; HomeForward in Portland, Oregon; Fresno Housing Authority, San Bernardino County, and San Diego, California; Dallas and Houston, Texas; Minneapolis and the Metropolitan Council Housing and Redevelopment Authority in Minnesota; Cook County, Illinois; Louisville, Kentucky; Atlanta, Georgia; Charlotte, North Carolina; Washington, DC; NYC Housing Preservation & Development, New York; Boston, Cambridge, and the Department of Housing and Community Development in Massachusetts; and Keene County, New Hampshire.
To learn more about CMTO or partner with us, please contact project manager Jacob Binder.