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Neighborhood effects, public housing and unemployment in France

  • Florence Goffette-Nagot

    ()

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

  • Claire Dujardin

    ()

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

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.

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Paper provided by HAL in its series Post-Print with number halshs-00133854.

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Date of creation: Apr 2006
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Publication status: Published in Neighborhood effects, public housing and unemployment in France, Apr 2006, Lille, France. 2006
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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