factual

Neighborhood Explains Only 5-10% of Variation

'Zip code is destiny' is false: the R-squared or explanatory power of neighborhoods for individual outcomes is only about 5-10%, meaning there is large variation within neighborhoods and many other factors (family, education, individual inspiration) matter far more than where you grow up; neighborhood is just one significant level of variation, not a determinant of fate.

factualpending

Speaker

Raj Chetty

Evidence Quote

to use a little bit of statistical jargon, the R-squared--or the explanatory power--of neighborhoods is nowhere close to 100%. It's probably more like 5% or 10%, meaning lots of other things matter well beyond your neighborhood

Source

Raj Chetty on Economic MobilityEconTalk
Created: 6/13/2026, 3:35:10 AM

My Notes

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