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Neighborhood Effects and Individual Unemployment

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  • Bauer, Thomas K.

    ()
    (RWI)

  • Fertig, Michael

    ()
    (ISG, Cologne)

  • Vorell, Matthias

    ()
    (RWI)

Abstract

Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment prospects. 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6040.

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Length: 40 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6040

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Keywords: social interactions; unemployment; neighborhood characteristics;

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References

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  1. Claire Dujardin & Florence Goffette-Nagot, 2006. "Neighborhood Effects, Public Housing and Unemployment in France," ERSA conference papers ersa06p362, European Regional Science Association.
  2. Ioannides, Yannis M. & Zabel, Jeffrey E., 2008. "Interactions, neighborhood selection and housing demand," Journal of Urban Economics, Elsevier, vol. 63(1), pages 229-252, January.
  3. Patrick Bayer & Stephen L. Ross, 2004. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Econometric Society 2004 North American Summer Meetings 495, Econometric Society.
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  9. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August.
  10. Claire Dujardin & Florence Goffette-Nagot, 2010. "Neighborhood effects on unemployment ? A test à la Altonji," Post-Print halshs-00435119, HAL.
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  18. Jason M. Fletcher, 2010. "Social interactions and smoking: evidence using multiple student cohorts, instrumental variables, and school fixed effects," Health Economics, John Wiley & Sons, Ltd., vol. 19(4), pages 466-484.
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  20. Charles F. Manski, 1989. "Anatomy of the Selection Problem," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 343-360.
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  22. 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, vol. 22(4), pages 891-924, October.
  23. Esther Duflo & Emmanuel Saez, 2002. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," NBER Working Papers 8885, National Bureau of Economic Research, Inc.
  24. John P. Haisken-DeNew & Markus H. Hahn, 2010. "PanelWhiz: Efficient Data Extraction of Complex Panel Data Sets - An Example Using the German SOEP," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 643-654.
  25. Finneran, Lisa & Kelly, Morgan, 2003. "Social networks and inequality," Journal of Urban Economics, Elsevier, vol. 53(2), pages 282-299, March.
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Cited by:
  1. Neil T.N. Ferguson & Maren M. Michaelsen, 2013. "The Legacy of Conflict – Regional Deprivation and School Performance in Northern Ireland," Ruhr Economic Papers 0419, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Wolfgang Lechthaler & Dennis Snower, 2013. "Worker Identity, Employment Fluctuations and Stabilization Policy," CESifo Working Paper Series 4271, CESifo Group Munich.

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