IDEAS home Printed from https://ideas.repec.org/a/oup/econjl/v129y2019i624p3219-3255..html
   My bibliography  Save this article

Diversity and Neighbourhood Satisfaction

Author

Listed:
  • Monica Langella
  • Alan Manning

Abstract

This article investigates the impact of ethnic diversity on individuals’ satisfaction with their neighbourhoods. It uses panel data and a variety of empirical methods to control for potential endogeneity of diversity and of location choices. We find that a higher white share raises overall satisfaction with the neighbourhood in our (overwhelming white) sample, but has no significant impact on generalised trust or other commonly used measures of social capital. We suggest that part of the impact of diversity on overall neighbourhood satisfaction may be through an effect on fear of crime, though we find no effect on actual crime.

Suggested Citation

  • Monica Langella & Alan Manning, 2019. "Diversity and Neighbourhood Satisfaction," The Economic Journal, Royal Economic Society, vol. 129(624), pages 3219-3255.
    • Handle: RePEc:oup:econjl:v:129:y:2019:i:624:p:3219-3255.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ej/uez030
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
    3. Luca Nunziata, 2015. "Immigration and crime: evidence from victimization data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 697-736, July.
    4. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    5. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 847-904.
    6. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    7. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    8. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1318-1347, December.
    9. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-251, May.
    10. Leah Platt Boustan, 2012. "School Desegregation and Urban Change: Evidence from City Boundaries," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 85-108, January.
    11. Knies, Gundi & Nandi, Alita & Platt, Lucinda, 2014. "Life satisfaction, ethnicity and neighbourhoods: is there an effect of neighbourhood ethnic composition on life satisfaction?," LSE Research Online Documents on Economics 55669, London School of Economics and Political Science, LSE Library.
    12. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    13. repec:dau:papers:123456789/5382 is not listed on IDEAS
    14. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages 300-323, November.
    15. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    16. Yann Algan & Camille Hémet & David D. Laitin, 2016. "The Social Effects of Ethnic Diversity at the Local Level: A Natural Experiment with Exogenous Residential Allocation," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 696-733.
    17. Christian Bjørnskov, 2007. "Determinants of generalized trust: A cross-country comparison," Public Choice, Springer, vol. 130(1), pages 1-21, January.
    18. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    19. Debby Gerritsen & Marcel Lubbers, 2010. "Unknown is unloved? Diversity and inter-population trust in Europe," European Union Politics, , vol. 11(2), pages 267-287, June.
    20. repec:hal:spmain:info:hdl:2441/4rm8ji0nae9elbggr366la3786 is not listed on IDEAS
    21. Ludwig, Jens & Duncan, Greg J. & Katz, Lawrence F. & Kessler, Ronald & Kling, Jeffrey R. & Gennetian, Lisa A. & Sanbonmatsu, Lisa, 2012. "Neighborhood Effects on the Long-Term Well-Being of Low-Income Adults," Scholarly Articles 11870359, Harvard University Department of Economics.
    22. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    23. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    24. Andrea Tesei, 2015. "Trust and Racial Income Inequality: Evidence from the U.S," CEP Discussion Papers dp1331, Centre for Economic Performance, LSE.
    25. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    26. Michael Amior, 2015. "Why are Higher Skilled Workers More Mobile Geographically? The Role of the Job Surplus," CEP Discussion Papers dp1338, Centre for Economic Performance, LSE.
    27. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    28. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    29. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    30. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    31. Yann Algan & Camille Hémet & David D. Laitin, 2016. "The Social Effects of Ethnic Diversity at the Local Level: A Natural Experiment with Exogenous Residential Allocation," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 696-733.
    32. Brian Bell & Francesco Fasani & Stephen Machin, 2013. "Crime and Immigration: Evidence from Large Immigrant Waves," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1278-1290, October.
    33. Carolyn Moehling & Anne Piehl, 2014. "Immigrant assimilation into US prisons, 1900–1930," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 173-200, January.
    34. Liz Twigg & Joanna Taylor & John Mohan, 2010. "Diversity or Disadvantage? Putnam, Goodhart, Ethnic Heterogeneity, and Collective Efficacy," Environment and Planning A, , vol. 42(6), pages 1421-1438, June.
    35. Elizabeth Oltmans Ananat, 2011. "The Wrong Side(s) of the Tracks: The Causal Effects of Racial Segregation on Urban Poverty and Inequality," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 34-66, April.
    36. Natalia Letki, 2008. "Does Diversity Erode Social Cohesion? Social Capital and Race in British Neighbourhoods," Political Studies, Political Studies Association, vol. 56, pages 99-126, March.
    37. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2012. "Ethnic Diversity and Preferences for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 41-76.
    38. Roland G. Fryer Jr., 2007. "Guess Who's Been Coming to Dinner? Trends in Interracial Marriage over the 20th Century," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 71-90, Spring.
    39. repec:hal:spmain:info:hdl:2441/6lcb7ovms687vbos73r9r0is5g is not listed on IDEAS
    40. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 177-218.
    41. Michael Amior, 2024. "Education and Geographical Mobility: The Role of the Job Surplus," American Economic Journal: Economic Policy, American Economic Association, vol. 16(4), pages 341-381, November.
    42. Federico Echenique & Roland G. Fryer, 2007. "A Measure of Segregation Based on Social Interactions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 441-485.
    43. Carolyn Moehling & Anne Piehl, 2009. "Immigration, crime, and incarceration in early twentieth-century america," Demography, Springer;Population Association of America (PAA), vol. 46(4), pages 739-763, November.
    44. Jörg L. Spenkuch, 2014. "Understanding the Impact of Immigration on Crime," American Law and Economics Review, American Law and Economics Association, vol. 16(1), pages 177-219.
    45. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-188, May.
    46. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
    47. Amelie F. Constant & Klaus F. Zimmermann (ed.), 2013. "International Handbook on the Economics of Migration," Books, Edward Elgar Publishing, number 4026.
    48. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    49. Andrew Leigh, 2006. "Trust, Inequality and Ethnic Heterogeneity," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 268-280, September.
    50. Leah Platt Boustan, 2010. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 417-443.
    51. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    52. Abowd, John M. & Freeman, Richard B. (ed.), 1991. "Immigration, Trade, and the Labor Market," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226000954.
    53. Mitali Das & Whitney K. Newey & Francis Vella, 2003. "Nonparametric Estimation of Sample Selection Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(1), pages 33-58.
    54. Sturgis, Patrick & Brunton-Smith, Ian & Read, Sanna & Allum, Nick, 2011. "Does Ethnic Diversity Erode Trust? Putnam’s ‘Hunkering Down’ Thesis Reconsidered," British Journal of Political Science, Cambridge University Press, vol. 41(1), pages 57-82, January.
    55. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    56. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 827-872.
    57. Aaron Chalfin, 2014. "What is the Contribution of Mexican Immigration to U.S. Crime Rates? Evidence from Rainfall Shocks in Mexico," American Law and Economics Review, American Law and Economics Association, vol. 16(1), pages 220-268.
    58. Natalia Letki, 2008. "Does Diversity Erode Social Cohesion? Social Capital and Race in British Neighbourhoods," Political Studies, Political Studies Association, vol. 56(1), pages 99-126, March.
    59. Andrea Tesei, 2014. "Trust, Racial Fragmentation and Income Inequality: New Evidence from the U.S," CESifo Working Paper Series 4718, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amior, Michael, 2020. "The contribution of immigration to local labor market adjustment," LSE Research Online Documents on Economics 108419, London School of Economics and Political Science, LSE Library.
    2. repec:bfr:quarte:2016:45:01 is not listed on IDEAS
    3. Rodríguez-Planas, Núria & Secor, Alan, 2023. "College Students' Social Capital and Their Perceptions of Local and National Cohesion," IZA Policy Papers 201, Institute of Labor Economics (IZA).
    4. Zhang, Zhijian & Wang, Xueyuan, 2022. "Birthplace diversity and private giving: Evidence from China," China Economic Review, Elsevier, vol. 74(C).
    5. repec:bfr:quarte:2016:45:06 is not listed on IDEAS
    6. L. Ferrara & G. Gauthier & F. Pappadà, 2017. "Fiscal consolidation episodes in OECD countries: the role of tax compliance and fiscal space," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 15-22, Spring.
    7. C. Berson & C. Malgouyres & S. Ray, 2017. "The labour market: institutions and reforms Summary of the third Labour Market Conference held in Aix-en-Provence on 1 and 2 December 2016 by the Aix-Marseille School of Economics and the Banque de Fr," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 45-52, Spring.
    8. Rachel Cho & Hisham Farag & Christoph Görtz & Danny McGowan & Huyen Nguyen & Max Schröder, 2025. "What’s the Melting Pot Worth? Multiculturalism and House Prices," CESifo Working Paper Series 11905, CESifo.
    9. C. Devillers & K. Parra Ramirez, 2017. "French Banks confirm their fourth rank in international banking," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 31-44, Spring.
    10. repec:bfr:quarte:2016:45:05 is not listed on IDEAS
    11. repec:bfr:quarte:2016:45:03 is not listed on IDEAS
    12. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    13. repec:bfr:quarte:2016:45:02 is not listed on IDEAS
    14. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    15. A. Lalliard, 2017. "An alternative method for capturing tensions in the residential property market," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 5-13, Spring.
    16. B. Bureau & M. Bürker & T. Libert, 2017. "The financial situation of companies in France in 2015," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 53-69, Spring.
    17. W. Arrata & A. Gautier & P. Lopez & I. Rahmouni-Rousseau & M. Girotti & B. Mojon & U. Szczerbowicz & M. Vari & T. Foucault, 2017. "12th Annual Central Bank Workshop on the Microstructure of Financial Markets 29-30 September 2016, Banque de France (Non-technical summary)," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 23-30, Spring.
    18. repec:bfr:quarte:2016:45:04 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, September.
    2. Emanuele Bracco & Luisanna Onnis, 2022. "Immigration, amnesties, and the shadow economy," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1135-1162, October.
    3. Luca Nunziata, 2015. "Immigration and crime: evidence from victimization data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 697-736, July.
    4. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    5. Rodríguez-Pose, Andrés & Von Berlepsch, Viola, 2017. "Does population diversity matter for economic development in the very long-term? Historic migration, diversity and county wealt," CEPR Discussion Papers 12347, C.E.P.R. Discussion Papers.
    6. Mariani, Fabio & Mercier, Marion, 2021. "Immigration and crime: The role of self-selection and institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 538-564.
    7. Andrés Rodríguez-Pose & Viola Berlepsch, 2019. "Does Population Diversity Matter for Economic Development in the Very Long Term? Historic Migration, Diversity and County Wealth in the US," European Journal of Population, Springer;European Association for Population Studies, vol. 35(5), pages 873-911, December.
    8. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Centre for Economic Performance, LSE.
    9. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1318-1347, December.
    10. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    11. Francesco Fasani, 2018. "Immigrant crime and legal status: evidence from repeated amnesty programs," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 887-914.
    12. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    13. Ning Jia & Raven Molloy & Christopher Smith & Abigail Wozniak, 2023. "The Economics of Internal Migration: Advances and Policy Questions," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 144-180, March.
    14. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    15. Libertad González & Francesc Ortega, 2008. "How Do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," Economic Reports 06-08, FEDEA.
    16. Libertad González Luna & Francesc Ortega, 2007. "How do very open economies adjust to large immigration flows? Recent evidence from Spanish regions," Economics Working Papers 1059, Department of Economics and Business, Universitat Pompeu Fabra.
    17. Thomas Breda & Alan Manning, 2024. "Diversity and social capital within the workplace: Evidence from Britain," Post-Print hal-04872995, HAL.
    18. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    19. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    20. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:econjl:v:129:y:2019:i:624:p:3219-3255.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.