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The Neighbourhood is Not What it Used to be

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Author Info
Oddbjørn Raaum
Kjell G. Salvanes
Erik O. Sørensen

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Abstract

Using a variance decomposition framework that bounds the effect of families and neighbourhoods, we find important effects of family characteristics and residential location on adult education and earnings in Norway. Neighbourhoods are less important than families, as the correlations among siblings are significantly higher than among children growing up in the same local community. The impact of neighbourhoods is reduced by half from 1960 to 1970. We link this result to several policy changes in the 1960s aimed at increasing equality of opportunity in Norway. Neighbour correlations in Norway are found to be significantly lower than in the US. Copyright 2006 Royal Economic Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2006.01053.x
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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 116 (2006)
Issue (Month): 508 (01)
Pages: 200-222
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Handle: RePEc:ecj:econjl:v:116:y:2006:i:508:p:200-222

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  3. Topa, Giorgio, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 68(2), pages 261-95, April.
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  4. Conley, T.G. & Topa, G., 1999. "Socio-Economic Distance and Spatial Patterns in Unemployment," Working Papers 99-04, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  5. Marianne E. Page & Gary Solon, 2003. "Correlations between Brothers and Neighboring Boys in Their Adult Earnings: The Importance of Being Urban," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 831-856, October. [Downloadable!]
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  7. Kunz, Jim & Page, Marianne E. & Solon, Gary, 2003. "Are point-in-time measures of neighborhood characteristics useful proxies for children's long-run neighborhood environment?," Economics Letters, Elsevier, vol. 79(2), pages 231-237, May. [Downloadable!] (restricted)
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  1. Markus Jäntti & Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Eva Österbacka & Anders Björklund & Tor Eriksson, 2006. "American Exceptionalism in a New Light: A Comparison of Intergenerational Earnings Mobility in the Nordic Countries, the United Kingdom and the United States," IZA Discussion Papers 1938, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Raaum , Oddbjørn & Røed, Knut, 2003. "Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Unemployment?," Memorandum 12/2002, Oslo University, Department of Economics. [Downloadable!]
  3. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," CeMMAP working papers CWP16/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  4. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Björklund, Anders & Lindahl, Lena & Lindquist, Matthew J., 2008. "What More Than Parental Income? An Exploration of What Swedish Siblings Get from Their Parents," IZA Discussion Papers 3735, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Bratsberg,Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Jäntti, Markus & Eriksson, Tor & Österbacka, Eva, 2007. "Nonlinearities in Intergenerational Earnings Mobility : Consequences for Cross-Country Comparisons," The Warwick Economics Research Paper Series (TWERPS) 782, University of Warwick, Department of Economics. [Downloadable!]
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  7. Black, Sandra & Devereux, Paul J. & Salvanes, Kjell G, 2003. "Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital," CEPR Discussion Papers 4150, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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