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Health in the cities: When the neighborhood matters more than income

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  • Bilger, Marcel
  • Carrieri, Vincenzo

Abstract

Using a rich Italian cross-sectional dataset, we estimate the effect of a neighborhood problems aggregate (including pollution, crime, and noise) on self-assessed health, presence of chronic conditions and limitations in daily activities. We address the self-selection of the residents in their neighborhoods, as well as the possible endogeneity of income with respect to health, through instrumental variable methods and several endogeneity tests. The main novelty is the sound estimation of the neighborhood effect on health using observational data, which has the advantage of providing general results that are not dependent on any experimental design. This allows us to fully compare the neighborhood effect with the traditional socioeconomic determinants of health. Our main findings are that low quality neighborhoods are strongly health damaging. This effect is comparable to the primary/upper secondary education health differential and is even higher than the impact that poor economic circumstances have on health.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 32 (2013)
Issue (Month): 1 ()
Pages: 1-11

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Handle: RePEc:eee:jhecon:v:32:y:2013:i:1:p:1-11

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Web page: http://www.elsevier.com/locate/inca/505560

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Keywords: Neighborhood effect; Neighborhood problems aggregate; Health; Endogeneity; Instrumental variables;

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Cited by:
  1. Daniel Kuehnle, 2013. "The causal effect of family income on child health: A re-examination using an instrumental variables approach," Working Papers 133, Bavarian Graduate Program in Economics (BGPE).
  2. Nádia Simões & Nuno Crespo & Sandrina B. Moreira & Celeste A. Varum, 2013. "Measurement and Determinants of Health Poverty and Richness – Evidence from Portugal," Working Papers Series 2 13-08, ISCTE-IUL, Business Research Unit (BRU-IUL).

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