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Neighborhood Effects and Individual Unemployment

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  • Thomas K. Bauer
  • Michael Fertig
  • Matthias Vorell

Abstract

Using a unique dataset for Germany that links individual longitudinal data from the SOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment propects. The panel setup and richness of the data allows us to overcome some of the identification problems which are present in this strand of literature. The empirical results indicate that there is a significant negative impact of neighborhood unemployment on the individual employment probability.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.389020.de/diw_sp0409.pdf
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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 409.

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Length: 40 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp409

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Keywords: Social interactions; unemployment; neighborhood characteristics;

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References

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  15. Patrick J. Bayer & Stephen L. Ross, 2010. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working Papers, Duke University, Department of Economics 10-50, Duke University, Department of Economics.
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  19. Bruce A. Weinberg & Patricia B. Reagan & Jeffrey J. Yankow, 2004. "Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 22(4), pages 891-924, October.
  20. DUJARDIN, Claire & PEETERS, Dominique & THOMAS, Isabelle, . "Neighbourhood effects and endogeneity issues," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2173, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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Cited by:
  1. Wolfgang Lechthaler & Dennis Snower, 2013. "Worker Identity, Employment Fluctuations and Stabilization Policy," CESifo Working Paper Series 4271, CESifo Group Munich.
  2. Ferguson, Neil T.N. & Michaelsen, Maren M., 2013. "The Legacy of Conflict: Regional Deprivation and School Performance in Northern Ireland," IZA Discussion Papers 7489, Institute for the Study of Labor (IZA).

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