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The Effect of Neighborhood Characteristics on Young Adult Outcomes: Alternative Estimates

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  • R. D. Plotnick
  • S. D. Hoffman

Abstract

We estimate a set of alternative models to examine the effect of neighborhood characteristics on outcomes among young adult women. The models are motivated by a concern that standard estimates of neighborhood effects may in part reflect the characteristics of families that reside in those neighborhoods. In addition to a "standard" model that includes controls for family background, we estimate fixed-effect models that also control for unobservable family characteristics that may affect young adult outcomes. To do this, we use a sample of sisters drawn from the Panel Study of Income Dynamics. In models that control for family background, we find evidence of neighborhood effects consistent with other recent work. In the fixed-effect models, however, there are no statistically significant effects that are consistent with standard hypotheses about neighborhood effects. The findings from this exploratory study suggest that one should be cautious about accepting findings of significant neighborhood effects derived from models that do not account for the possible selection of neighborhood.

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Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1106-96.

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Handle: RePEc:wop:wispod:1106-96

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  1. Donna Ginther & Robert Haveman & Barbara Wolfe, 2000. "Neighborhood Attributes as Determinants of Children's Outcomes: How Robust Are the Relationships?," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 603-642.
  2. G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
  3. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
  4. Orley Ashenfelter & Alan Krueger, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," Working Papers 683, Princeton University, Department of Economics, Industrial Relations Section..
  5. Daniel Aaronson, . "Using Sibling Data to Estimate the Impact of Neighborhoods on Children's Educational Outcomes," IPR working papers 95-20, Institute for Policy Resarch at Northwestern University.
  6. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 966-91, October.
  7. Geronimus, Arline T & Korenman, Sanders, 1992. "The Socioeconomic Consequences of Teen Childbearing Reconsidered," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1187-214, November.
  8. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  9. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October.
  10. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
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Cited by:
  1. Nyhus, Ellen K. & Pons, Empar, 2005. "The effects of personality on earnings," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 363-384, June.
  2. Anne R. Pebley & Narayan Sastry, 2003. "Neighborhoods, Poverty and Children's Well-being: A Review," Working Papers 03-04, RAND Corporation Publications Department.
  3. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters," IZA Discussion Papers 3828, Institute for the Study of Labor (IZA).
  4. Ethan Cohen-Cole, 2005. "Resolving the Identification Problem in Linear Social Interactions Models: Modeling with Between-Group Spillovers," Others 0501001, EconWPA.
  5. Antecol, Heather & Cobb-Clark, Deborah A., 2006. "Racial and Ethnic Discrimination in Local Consumer Markets: Exploiting the Army’s Procedures for Matching Personnel to Duty Locations," IZA Discussion Papers 2389, Institute for the Study of Labor (IZA).
  6. Galster, George & Andersson, Roger & Musterd, Sako & Kauppinen, Timo M., 2008. "Does neighborhood income mix affect earnings of adults? New evidence from Sweden," Journal of Urban Economics, Elsevier, vol. 63(3), pages 858-870, May.
  7. Kaushik Basu, 2007. "Participatory Equity, Identity, and Productivity Policy Implications for Promoting Development," Working Papers id:1122, eSocialSciences.
  8. Szulkin, Ryszard & Hällsten, Martin, 2009. "Families, neighborhoods, and the future: The transition to adulthood of children of native and immigrant origin in Sweden," SULCIS Working Papers 2009:9, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  9. Linda Datcher Loury, 2004. "Teen Childbearing and Community Religiosity," Discussion Papers Series, Department of Economics, Tufts University 0405, Department of Economics, Tufts University.
  10. I. Ku & R. D. Plotnick, . "Do Children from Welfare Families Obtain Less Education?," Institute for Research on Poverty Discussion Papers 1217-00, University of Wisconsin Institute for Research on Poverty.
  11. Linda Loury, 2006. "Teen Childbearing and Conservative Religious Communities," Discussion Papers Series, Department of Economics, Tufts University 0619, Department of Economics, Tufts University.
  12. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Identity and racial harassment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 529-557, June.
  13. Laura E Hill & Hans P Johnson, 2002. "The Relationship of Personal and Neighborhood Characteristics to Immigrant Fertility," Working Papers 02-20, Center for Economic Studies, U.S. Census Bureau.
  14. Emmanuel Duguet & Yannick L'Horty & Pascale Petit, 2011. "Residential Discrimination and Ethnic Origin: An experimental assessment in the Paris suburbs," Working Papers halshs-00812132, HAL.
  15. Rhiannon Patterson, 2008. "Neighborhood Effects on High-School Drop-Out Rates and Teenage Childbearing: Tests for Non-Linearities, Race-Specific Effects, Interactions with Family Characteristics, and Endogenous Causation using ," Working Papers 08-12, Center for Economic Studies, U.S. Census Bureau.
  16. Galster, George, 2002. "An economic efficiency analysis of deconcentrating poverty populations," Journal of Housing Economics, Elsevier, vol. 11(4), pages 303-329, December.
  17. William A. Brock & Steven N. Durlauf, 2003. "Multinomial Choice with Social Interactions," NBER Technical Working Papers 0288, National Bureau of Economic Research, Inc.

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