Neighborhood Effects and Missing Markets for Opportunity / Lawrence F. Katz.

Format:

Book

Author/Creator:

Katz, Lawrence F.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w35419.

NBER working paper series no. w35419

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2026.

Summary:

Experimental and quasi-experimental studies show that childhood neighborhoods have substantial causal impacts on children's adult earnings and other long-term socioeconomic outcomes. Several market failures are likely to lead to excessive residential segregation by parental income and to an under-supply of mixed-income neighborhoods. Missing markets for opportunity originate in capital market imperfections for borrowing on children's future earnings, neighbor spillovers, behavioral biases, and housing search frictions. Customized housing mobility services combined with subsidized housing vouchers can help low-income families move to higher-opportunity areas. Place-based policies that create mixed-income neighborhoods appear to increase long-term outcomes for less-advantaged children.

Notes:

July 2026.

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