IDEAS home Printed from https://ideas.repec.org/a/taf/chosxx/v28y2013i3p473-498.html
   My bibliography  Save this article

Measuring Neighbourhood Effects Non-experimentally: How Much Do Alternative Methods Matter?

Author

Listed:
  • George Galster
  • Lina Hedman

Abstract

European research attempting to quantify neighbourhood effects has relied almost exclusively on analyses of observational data. No consensus has emerged, perhaps because a variety of statistical procedures have been employed. We investigate this by exploring the degree to which alternative, non-experimental statistical methods yield different estimates of the relationship between neighbourhood income mix and individual work income when applied to the same longitudinal database. We find that results are highly sensitive to the statistical approach employed. Methods controlling for geographic selection bias generally reduce the negative association between low-income neighbours and individual earnings, but substantial differences across models remain. Controlling for both selection and endogeneity produces larger associations and evidence of non-linearity, something that is hidden in models only controlling for selection. All methods suffer shortcomings, so we argue for multi-method investigations to identify robust findings, with instrumental variables and fixed effects on non-mover samples being preferred. In our case, we find a substantial neighbourhood effect, regardless of the method employed.

Suggested Citation

  • George Galster & Lina Hedman, 2013. "Measuring Neighbourhood Effects Non-experimentally: How Much Do Alternative Methods Matter?," Housing Studies, Taylor & Francis Journals, vol. 28(3), pages 473-498, April.
  • Handle: RePEc:taf:chosxx:v:28:y:2013:i:3:p:473-498
    DOI: 10.1080/02673037.2013.759544
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02673037.2013.759544
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    as
    1. Åslund, Olof & Fredriksson, Peter, 2005. "Ethnic enclaves and welfare cultures - quasi-experimental evidence," Working Paper Series 2005:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Propper, Carol & Jones, Kelvyn & Bolster, Anne & Burgess, Simon & Johnston, Ron & Sarker, Rebecca, 2005. "Local neighbourhood and mental health: Evidence from the UK," Social Science & Medicine, Elsevier, vol. 61(10), pages 2065-2083, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:taf:chosxx:v:28:y:2013:i:3:p:473-498. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/chos20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.