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Segregation and individual employment: a longitudinal study of neighborhood effects

Author

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  • Sofia Wixe

    () (Jönköping International Business School)

  • Lars Pettersson

    (Jönköping International Business School)

Abstract

In this article, we study whether individuals who reside in segregated neighborhoods in Sweden have lower propensity to be employed. We employ full population micro-data, which allow us to follow the same group of individuals over 21 years and make it possible to apply an individual fixed effects strategy to reduce issues of self-selection and individual heterogeneity. The results show that individuals in segregated neighborhoods are less likely to be employed compared to individuals living in non-segregated neighborhoods. This observation is most significant in metropolitan regions. Furthermore, the relationship appears to be particularly attributed to males of foreign background. However, it is not the spatial separation between immigrants and natives that lies behind the negative relationship between segregation and employment, but rather the distress of neighborhoods.

Suggested Citation

  • Sofia Wixe & Lars Pettersson, 2020. "Segregation and individual employment: a longitudinal study of neighborhood effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 9-36, February.
  • Handle: RePEc:spr:anresc:v:64:y:2020:i:1:d:10.1007_s00168-019-00950-x
    DOI: 10.1007/s00168-019-00950-x
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    References listed on IDEAS

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    More about this item

    Keywords

    J21; J61; R23;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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