Urban Policies in the War on Poverty

Jens LudwigUniversity of Chicago and NBER

Edgar O. OlsenUniversity of Virginia

Anticipated Conclusions Little can be said about the effects or

legacy of new place-based economic development programs

The expansion of low-income housing programs had a significant direct effect on poverty correctly measured

Anticipated Conclusions

New low-income housing programs moved the system away from public housing towards somewhat more cost-effective privately-owned subsidized housing projects and much more cost-effective housing voucher program

Anticipated Conclusions

The movement away from public housing also increased recipient choice and reduced racial and economic segregation

1968 Fair Housing Act surely had the same effect to some extent

These changes had little effect on material deprivation

Outline of Paper Description of programs inherited Contemporaneous evidence on their effects Reasons for dissatisfaction with them Beliefs about why new programs would

perform better Later evidence on performance of inherited

and new programs Effects of new programs on evolution of place-

based economic development programs and low-income housing assistance

Economic Development Programs

Nature of Programs Inherited Program

Urban Renewal (1949-1974) New Programs

Model Cities (1966-1974) EDA (1965-) Appalachian Regional Commission

(1965-)

Low-Income Housing Programs

Nature of Programs Inherited Programs

Public Housing (1937-) New Programs

Section 23 (1965-1974) Section 236 (1968-1973) Section 235 (1968-1973, 1975-1987)

1968 Fair Housing Act

What was its effect on racial segregation in housing?