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Neighborhood effects, public housing and unemployment in France

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  • Florence Goffette-Nagot

    () (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Claire Dujardin

    () (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain)

Abstract

This paper is aimed at examining how individual unemployment is influenced both by location in a deprived neighborhood and public housing. Our identification strategy is twofold. First, we estimate a simultaneous probit model of public housing accommodation, type of neighborhood, and unemployment, thus accounting explicitely for correlation of unobservables between the three behaviors. Second, we take advantage of the situation of the public housing sector in France, which allows us to use public housing accommodation as a powerfuldeterminant of neighborhood choices and to use household's demographic characteristics as exclusion restrictions. Our results show that public housing does not have any direct effect on unemployment. However, living within the 35% more deprived neighborhoods does increase the unemployment probability significantly. As expected, the effect of neighborhood substantially decreases when dealing with the endogeneity of neighborhood and when using public housing as a determinant of neighborhood choice.

Suggested Citation

  • Florence Goffette-Nagot & Claire Dujardin, 2006. "Neighborhood effects, public housing and unemployment in France," Post-Print halshs-00133854, HAL.
  • Handle: RePEc:hal:journl:halshs-00133854
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00133854v2
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    Cited by:

    1. Nicolas Renahy & Bertrand Schmitt, 2005. "Introduction - Travail et territoires," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 76, pages 5-8.
    2. GOBILLON Laurent & SELOD Harris, 2007. "The effects of segregation and spatial mismatch on unemployment: evidence from France," Research Unit Working Papers 0702, Laboratoire d'Economie Appliquee, INRA.
    3. Thomas K. Bauer & Michael Fertig & Matthias Vorell, 2011. "Neighborhood Effects and Individual Unemployment," SOEPpapers on Multidisciplinary Panel Data Research 409, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Thomas K. Bauer & Michael Fertig & Matthias Vorell, 2011. "Neighborhood Eff ects and Individual Unemployment," Ruhr Economic Papers 0285, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Harris Selod & Laurent Gobillon, 2007. "Les déterminants locaux du chômage en région parisienne," Économie et Prévision, Programme National Persée, vol. 180(4), pages 19-38.
    6. Nicolas Renahy & Bertrand Schmitt, 2005. "Introduction - Travail et territoires," Post-Print hal-01201104, HAL.
    7. Benoît Schmutz, 2015. "Spatial sorting of African Immigrants in the French Public Housing Market," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(3), pages 247-270, September.
    8. Renahy, Nicolas & Schmitt, Bertrand, 2005. "Introduction - Travail et territoires," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 0.
    9. repec:zbw:rwirep:0285 is not listed on IDEAS
    10. Petrović, Ana & Manley, David & van Ham, Maarten, 2018. "Freedom from the Tyranny of Neighbourhood: Rethinking Socio-Spatial Context Effects," IZA Discussion Papers 11416, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Neighborhood effects; public housing; unemployment; simultaneous probit models; simulated maximum likelihood;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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