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Searching for the Best Neighborhood: Mobility and Social Interactions

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  • Yannis Ioannides
  • Giulio Zanella

Abstract

The paper seeks to contribute to the social interactions literature by exploiting data on individual's self- selection into neighborhoods. We study a model in which households search for the best location in the presence of neighborhood effects in the formation of children's human capital and in the process of cultural transmission. We use micro data from the PSID which we have merged, using geocodes, with contextual information at the leves of census tracts and of counties from the 2000 US Census. We control for numerous individual characteristics and neighborhood attributes and find, consistently with neighborhood effects models, that households with children, but not those without, are more likely to move out of neighborhoods whose attributes are not favorable to the productin of human capital and the transmission of parents' cultural traits, and to move into neighborhoods which instead exhibit desireable such attributes.

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Bibliographic Info

Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0720.

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Date of creation: 2008
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Handle: RePEc:tuf:tuftec:0720

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Cited by:
  1. Alberto Bisin & Andrea Moro & Giorgio Topa, 2011. "The empirical content of models with multiple equilibria in economies with social interactions," Staff Reports 504, Federal Reserve Bank of New York.
  2. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
  3. Fausto Galli & Giuseppe Russo, 2013. "Immigration Restriction and Long-Run Cultural Assimilation: Theory and Quasi-Experimental Evidence," CSEF Working Papers 349, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  4. Yannis M. Ioannides, 2008. "Full Solution of an Endogenous Sorting Model with Contextual and Income Effects," Discussion Papers Series, Department of Economics, Tufts University 0724, Department of Economics, Tufts University.

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