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The MTO experiment was conducted from 1994 to 1998 by the U

Philosophy Apr 03, 2023

The MTO experiment was conducted from 1994 to 1998 by the U.S. Department of Housing and Urban Development (HUD) at 5 sites: Baltimore, Boston, Chicago, LA, and New York. 4,600 families were randomly assigned to receive either: 1. a) a traditional Section 8 voucher that had no restrictions as to where the family could move, 2. b) an experimental voucher restricted to only low poverty census tracts, or 3. c) no housing voucher at all. The average voucher was about $1,000 per month. King, Liebman, & Katz examine earnings for *adults* who receive the voucher. They find little to no impact of moving to a better area on economic outcomes such as earnings higher earnings for white adults that move to low-poverty areas, but little impact on earnings for black families that move to low-poverty areas adults that move to low-poverty areas earn significantly less than those who do not adults that move to low-poverty areas earn significantly more than those who do not

 

 

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