Coping with the Great Recession: Disparate Impacts on Economic Well-Being in Poor Neighborhoods

Robert I. Lerman, Sisi Zhang

Did the Great Recession hit poor neighborhoods especially hard? Surprisingly, between 2007 and 2009, residents in the poorest neighborhoods did not suffer worse losses in employment and wages than did other neighborhoods. Poor neighborhoods saw unusually high job losses among men but not among women. Because residents in poor neighborhoods had especially low homeownership rates, they were less likely to face big losses in home equity. Homeowners in poor neighborhoods were slightly less likely to sustain homeownership, but they weren’t locked out of jobs because of immobility. In fact, these homeowners fared better in the job market than renters.

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