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The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes

Author

Listed:
  • Markussen, Simen

    () (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    () (Ragnar Frisch Centre for Economic Research)

Abstract

Based on Norwegian administrative registers we provide new empirical evidence on the effects of the childhood neighborhood's socioeconomic status on educational and labor market performance. A neighborhood's status is measured annually by its prime age inhabitants' earnings ranks within larger commuting zones, and the childhood neighborhood status is the average status of the neighborhoods inhabited from birth to age 15. Identification of causal effects relies on within-family comparisons. Our results reveal a hump-shaped relationship between the socioeconomic status of the childhood neighborhood and school results at age 15-16, such that the optimal neighborhood is of medium rank. The top-ranked neighbor-hoods are as bad as the bottom-ranked. Similar results are obtained for educational and labor market outcomes measured at higher ages.

Suggested Citation

  • Markussen, Simen & Røed, Knut, 2018. "The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes," IZA Discussion Papers 11684, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11684
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    References listed on IDEAS

    as
    1. Daniel Aaronson, 1998. "Using Sibling Data to Estimate the Impact of Neighborhoods on Children's Educational Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 915-946.
    2. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    3. repec:bla:scandj:v:119:y:2017:i:1:p:5-33 is not listed on IDEAS
    4. Katz, Lawrence & Duncan, Greg J. & Kling, Jeffrey R. & Kessler, Ronald C. & Ludwig, Jens & Sanbonmatsu, Lisa & Liebman, Jeffrey B., 2008. "What Can We Learn about Neighborhood Effects from the Moving to Opportunity Experiment?," Scholarly Articles 2766959, Harvard University Department of Economics.
    5. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    6. repec:uwp:jhriss:v:53:y:2018:i:2:p:356-381 is not listed on IDEAS
    7. repec:hrv:faseco:30367426 is not listed on IDEAS
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    More about this item

    Keywords

    segregation; neighborhood effects; social mobility; educational outcomes;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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