We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Do Neighborhoods Affect the Credit Market Decisions of Low-Income Borrowers? Evidence from the Moving to Opportunity Experiment.
- Authors
Miller, Sarah; Soo, Cindy K
- Abstract
This paper isolates the causal impact of neighborhood environment on the credit outcomes of low-income borrowers by analyzing the participants of the Moving to Opportunity (MTO) experiment. MTO was a unique, large-scale experiment that offered families vouchers to move to better neighborhoods via randomized lottery. We find higher credit scores and use among those required to move to the lowest poverty areas as young children. For those who moved as adults, we find that better neighborhoods lead to a reduction of overdue debts and delinquencies, but only among those given unrestricted neighborhood choice.
- Subjects
NEIGHBORHOODS; POOR people; MORTGAGE loans; HOUSEHOLD moving; CREDIT
- Publication
Review of Financial Studies, 2021, Vol 34, Issue 2, p827
- ISSN
0893-9454
- Publication type
Article
- DOI
10.1093/rfs/hhaa060