This article investigates the causal effects of neighborhood on high school dropping out and teenage pregnancy within a counterfactual framework. It shows that when two groups of children, identical at age 10 on observed factors, experience different neighborhoods during adolescence, those in high-poverty neighborhoods are more likely to drop out of high school and have… Continue reading Counterfactual Models of Neighborhood Effects: The Effect of Neighborhood Poverty on Dropping Out and Teenage Pregnancy