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The influence of neighbourhood effects on education decisions in a nationally funded education system : the case of Australia

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  • Overman, Henry G.
  • Heath, Alex

Abstract

Empirical papers studying the effects of neighbourhood characteristics on socio-economic variables have predominantly used US data. We argue that the local nature of the US schooling system means that neighbourhood effects on education decisions may act through fiscal or social channels. We use data for a nationally funded public schooling system to identify neighbourhood effects in an environment where the level of school funding is independent of neighbourhood composition. We identify two different types of neighbourhood effects on school dropout. First, teenagers are more likely to dropout if the average dropout rate in the neighbourhood is high. Second, teenagers are more likely to dropout if they live in neighbourhoods with a high percentage of adults with vocational qualifications.

Suggested Citation

  • Overman, Henry G. & Heath, Alex, 2000. "The influence of neighbourhood effects on education decisions in a nationally funded education system : the case of Australia," LSE Research Online Documents on Economics 678, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:678
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    References listed on IDEAS

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    Cited by:

    1. Gordey Yastrebov & Alexey Bessudnov & Мarina Pinskaya & Sergey Kosaretsky, 2013. "The Issue of Educational Results' Contextualization: Schools, Their Social Structure and a Territory Deprivation Level," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 4, pages 188-246.
    2. Gordey A. Yasterbov & Alexey R. Bessudnov & Marina A. Pinskaya & Sergey G. Kosaretsky, 2014. "Contextualizing Academic Performance In Russian Schools: School Characteristics, The Composition Of Student Body And Local Deprivation," HSE Working papers WP BRP 55/SOC/2014, National Research University Higher School of Economics.
    3. Flannery, Darragh & O'Donoghue, Cathal, 2009. "The Determinants of Higher Education Participation in Ireland: A Micro Analysis," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 73-107.
    4. Jeff Borland, 2000. "Disaggregated Models of Unemployment in Australia," Melbourne Institute Working Paper Series wp2000n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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    More about this item

    Keywords

    Neighbourhood effects; education decisions; externalities. JEL classification codes: I20; J24; R12.;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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