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The impact of neighbourhood on the income and mental health of British social renters


  • Carol Propper
  • Simon Burgess
  • Anne Bolster
  • George Leckie
  • Kelvyn Jones
  • Ron Johnston



This paper examines the impact of neighbourhood on the income and mental health of individuals living in social housing in the United Kingdom. We exploit a dataset that is representative and longitudinal to match people to their very local neighbourhoods. Using this, we examine the effect of living in a neighbourhood in which the population is more disadvantaged on the levels and change, over a 10-year window, of income and mental health. We find that social renters who live with the most disadvantaged individuals as neighbours have lower levels of household income and poorer mental health. However, neighbourhood appears to have no impact on changes in either household income or individual mental health.

Suggested Citation

  • Carol Propper & Simon Burgess & Anne Bolster & George Leckie & Kelvyn Jones & Ron Johnston, 2006. "The impact of neighbourhood on the income and mental health of British social renters," The Centre for Market and Public Organisation 06/161, Department of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:cmpowp:06/161

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    References listed on IDEAS

    1. Steve Gibbons, 2002. "Neighbourhood Effects on Educational Achievement," CEE Discussion Papers 0018, Centre for the Economics of Education, LSE.
    2. Jens Ludwig & Greg J. Duncan & Paul Hirschfield, 2001. "Urban Poverty and Juvenile Crime: Evidence from a Randomized Housing-Mobility Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 655-679.
    3. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 531-542.
    4. Brian A. Jacob, 2003. "Public Housing, Housing Vouchers and Student Achievement: Evidence from Public Housing Demolitions in Chicago," NBER Working Papers 9652, National Bureau of Economic Research, Inc.
    5. Durlauf, Steven N., 2004. "Neighborhood effects," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 50, pages 2173-2242 Elsevier.
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    Cited by:

    1. Francesca Cornaglia & Naomi E. Feldman & Andrew Leigh, 2014. "Crime and Mental Well-Being," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 110-140.

    More about this item


    Neighbourhood effects; income; mental health; social renters;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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