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Neighborhood Effects and Individual Unemployment

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  • Bauer, Thomas K.

    (RWI)

  • Fertig, Michael

    (ISG, Cologne)

  • Vorell, Matthias

    (RWI)

Abstract

Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment prospects. The panel setup and richness of the data allows us to overcome some of the identification problems which are present in this strand of literature. The empirical results indicate that there is a significant negative impact of neighborhood unemployment on the individual employment probability.

Suggested Citation

  • Bauer, Thomas K. & Fertig, Michael & Vorell, Matthias, 2011. "Neighborhood Effects and Individual Unemployment," IZA Discussion Papers 6040, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6040
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    Cited by:

    1. Snower, Dennis J. & Lechthaler, Wolfgang, 2013. "Worker Identity, Employment Fluctuations and Stabilization Policy," IZA Discussion Papers 7413, Institute of Labor Economics (IZA).
    2. Bauer, Thomas K. & Dang, Rui, 2016. "Do welfare dependent neighbors matter for individual welfare dependency?," Ruhr Economic Papers 606, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Ferguson, Neil T.N. & Michaelsen, Maren M., 2015. "Money changes everything? Education and regional deprivation revisited," Economics of Education Review, Elsevier, vol. 48(C), pages 129-147.
    4. Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100584, Verein für Socialpolitik / German Economic Association.
    5. repec:zbw:rwirep:0535 is not listed on IDEAS
    6. Ferguson, Neil T. N. & Michaelsen, Maren M., 2013. "The Legacy of Conflict – Regional Deprivation and School Performance in Northern Ireland," Ruhr Economic Papers 419, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Eric Schuss, 2020. "Do Ethnic Networks Ameliorate Education–Occupation Mismatch?," LABOUR, CEIS, vol. 34(4), pages 441-476, December.
    8. Neil T.N. Ferguson & Maren M. Michaelsen, 2013. "The Legacy of Conflict – Regional Deprivation and School Performance in Northern Ireland," Ruhr Economic Papers 0419, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Elisabeth Bügelmayer & Daniel D. Schnitzlein, 2018. "Is it the family or the neighborhood? Evidence from sibling and neighbor correlations in youth education and health," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(3), pages 369-388, September.
    10. Bechara, Peggy & Eilers, Lea & Paloyo, Alfredo R., 2015. "In Good Company – Neighborhood Quality and Female Employment," Ruhr Economic Papers 535, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Dang, Rui, 2015. "Spillover effects of local human capital stock on adult obesity: Evidence from German neighborhoods," Ruhr Economic Papers 585, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Mathias Kloss & Thomas Kirschstein & Steffen Liebscher & Martin Petrick, 2019. "Robust Productivity Analysis: An application to German FADN data," Papers 1902.00678, arXiv.org, revised Feb 2019.
    13. Peggy Bechara & Lea Eilers & Alfredo R. Paloyo, 2014. "In Good Company – Neighborhood Quality and Female Employment," Ruhr Economic Papers 0535, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. Petrović, Ana & Manley, David & van Ham, Maarten, 2018. "Freedom from the Tyranny of Neighbourhood: Rethinking Socio-Spatial Context Effects," IZA Discussion Papers 11416, Institute of Labor Economics (IZA).
    15. Lea Eilers & Alfredo R. Paloyo & Peggy Bechara, 2022. "The effect of peer employment and neighborhood characteristics on individual employment," Empirical Economics, Springer, vol. 62(4), pages 1885-1908, April.
    16. Vom Berge, Philipp & Schanne, Norbert & Schild, Christopher-Johannes & Trübswetter, Parvati & Wurdack, Anja & Petrovic, Ana, 2014. "Eine räumliche Analyse für Deutschland: Wie sich Menschen mit niedrigen Löhnen in Großstädten verteilen (A spatial analysis for Germany : How low wage earners are dispersed within major cities)," IAB-Kurzbericht 201412, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    More about this item

    Keywords

    social interactions; unemployment; neighborhood characteristics;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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