Neighbourhood Effects in Canada: A Critique

A growing number of researchers and policy-makers concern themselves with the possible effects of living in areas with high concentrations of poverty. This paper provides an overview of such literature from a Canadian policy perspective. I draw three conclusions. First, household exposure to concentrated poverty is substantially less than in the United States. Second, much of the existing Canadian research on neighbourhood effects relies on regression analysis, which is prone to bias and misinterpretation. Third, the most persuasive research to date suggests that residential environment matters most to an individual's mental health and exposure to crime, but has little influence on self-sufficiency or child development. Smaller spheres of interaction, such as at the classroom or roommate level, appear to matter more.