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Does poor neighbourhood reputation create a neighbourhood effect on employment? The results of a field experiment in the UK

Author

Listed:
  • Tunstall, Rebecca
  • Green, Anne
  • Lupton, Ruth
  • Watmough, Simon
  • Bates, Katie

Abstract

There are substantial variations in labour market outcomes between neighbourhoods. One potential partial explanation is that residents of some neighbourhoods face discrimination from employers. Although studies of deprived areas have recorded resident perceptions of discrimination by employers and negative employer perceptions of certain areas, until now there has been no direct evidence on whether employers treat job applicants differently by area of residence. This paper reports a unique experiment to test for a neighbourhood reputation effect involving 2001 applications to 667 real jobs by fictional candidates nominally resident in neighbourhoods with poor and bland reputations. The experiment found no statistically significant difference in employer treatment of applicants from these areas, indicating that people living in neighbourhoods with poor reputations did not face ‘postcode discrimination’ in the labour market, at the initial selection stage.

Suggested Citation

  • Tunstall, Rebecca & Green, Anne & Lupton, Ruth & Watmough, Simon & Bates, Katie, 2014. "Does poor neighbourhood reputation create a neighbourhood effect on employment? The results of a field experiment in the UK," LSE Research Online Documents on Economics 55913, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:55913
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    File URL: http://eprints.lse.ac.uk/55913/
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    References listed on IDEAS

    as
    1. Zenou, Yves, 2002. "How do firms redline workers?," Journal of Urban Economics, Elsevier, vol. 52(3), pages 391-408, November.
    2. Ruth Lupton, 2003. "Neighbourhood Effects: Can we measure them and does it matter?," CASE Papers case73, Centre for Analysis of Social Exclusion, LSE.
    3. repec:esr:resser:bkmnext137 is not listed on IDEAS
    4. Peter A. Riach & Judith Rich, 2004. "Deceptive Field Experiments of Discrimination: Are they Ethical?," Kyklos, Wiley Blackwell, vol. 57(3), pages 457-470, August.
    5. repec:mpr:mprres:1960 is not listed on IDEAS
    6. Lupton, Ruth, 2003. "'Neighbourhood effects': can we measure them and does it matter?," LSE Research Online Documents on Economics 6327, London School of Economics and Political Science, LSE Library.
    7. repec:mpr:mprres:4994 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mathieu Bunel & Yannick L’Horty & Pascale Petit, 2016. "Discrimination based on place of residence and access to employment," Urban Studies, Urban Studies Journal Limited, vol. 53(2), pages 267-286, February.
    2. Carlsson, Magnus & Abrar Reshid, Abdulaziz & Rooth, Dan-Olof, 2018. "Neighborhood Signaling Effects, Commuting Time, and Employment: Evidence from a Field Experiment," IZA Discussion Papers 11284, Institute for the Study of Labor (IZA).
    3. Emmanuel Duguet & David Gray & Yannick L'Horty & Loïc du Parquet & Pascale Petit, 2017. "Labor Market Effects of Urban Riots:an experimental assessment," TEPP Working Paper 2017-03, TEPP.
    4. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," IZA Discussion Papers 10738, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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