Neighbourhood Effects, Housing Tenure, and Individual Employment Outcomes
This paper investigates whether individuals living in neighbourhoods with high concentrations of unemployment are less likely to enter work if they are unemployed and more likely to lose their job if they are employed. The main challenge in the neighbourhood effects literature is the identification of causal neighbourhood effects. A particular problem is that individuals do not randomly select neighbourhoods to live in: the selection process is often linked to the labour market situation and potential of individuals. To get more insight in neighbourhood effects we run separate models for social renters and owner occupiers. This study uses anonymised individual level longitudinal data from the Scottish Longitudinal Study for 1991 and 2001 with multiple neighbourhood scales operationalised. Based on the results we argue that any apparent neighbourhoods effects that were present in models of the full population are at least partly an artefact of different neighbourhood selection mechanisms. The conclusions of the paper call for a more nuanced treatment of neighbourhood effects and the development of models that seek to include neighbourhood selection from the outset.
|Date of creation:||Oct 2010|
|Publication status:||published in: Van Ham M., Manley D., Bailey N., Simpson L., Maclennan D. (eds.), [Neighbourhood Effects Research: New Perspectives] (Chapter 7), Springer Dordrecht, 2012, 147-173|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van der Klaauw, Bas & van Ours, Jan C., 2003.
"From welfare to work: does the neighborhood matter?,"
Journal of Public Economics,
Elsevier, vol. 87(5-6), pages 957-985, May.
- van der Klaauw, B. & van Ours, J.C., 2003. "From welfare to work : Does the neighbourhood matter?," Other publications TiSEM 196c643f-07ca-496b-950c-b, Tilburg University, School of Economics and Management.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5271. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.