An Alternative Approach to Addressing Selection Into and Out of Social Settings: Neighborhood Change and African American Children's Economic Outcomes

This article develops a method to estimate the impact of change in a particular social setting, the residential neighborhood, that is designed to address nonrandom selection into a neighborhood and nonrandom selection out of a neighborhood. Utilizing matching to confront selection into neighborhood environments and instrumental variables to confront selection out of changing neighborhoods, the method is applied to assess the effect of a decline in neighborhood concentrated disadvantage on the economic fortunes of African American children living within changing neighborhoods. Substantive findings indicate that a decline in neighborhood concentrated disadvantage during childhood leads to increases in adult earnings and income, but has no effects on educational attainment or other social outcomes.