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Cumulative Exposure to Disadvantage and the Intergenerational Transmission of Neighbourhood Effects


  • Hedman, Lina

    () (Uppsala University)

  • Manley, David

    () (University of Bristol)

  • van Ham, Maarten

    () (Delft University of Technology)

  • Östh, John

    () (Uppsala University)


Studies of neighbourhood effects typically investigate the instantaneous effect of point-in-time measures of neighbourhood poverty on individual outcomes. It has been suggested that it is not solely the current neighbourhood, but also the neighbourhood history of an individual that is important in determining an individual's outcomes. The effect of long-term exposure to poverty neighbourhoods on adults has largely been ignored in the empirical literature, partly due to a lack of suitable data. Using a population of parental home-leavers in Stockholm, Sweden, this study is innovative in investigating the effects of two temporal dimensions of exposure to neighbourhood environments on personal income later in life: the parental neighbourhood at the time of leaving the home and the cumulative exposure to poverty neighbourhoods in the subsequent 17 years. Using unique longitudinal Swedish register data and bespoke individual neighbourhoods, we are the first to employ a hybrid model, which combines both random and fixed effects approaches, in a study of neighbourhood effects. We find independent and non-trivial effects on income of the parental neighbourhood and cumulative exposure to poverty concentration neighbourhoods. The intergenerational transmission and exposure effects suggest the need for a more dynamic formulation of the neighbourhood effects hypothesis which explicitly takes temporal dimensions into account.

Suggested Citation

  • Hedman, Lina & Manley, David & van Ham, Maarten & Östh, John, 2012. "Cumulative Exposure to Disadvantage and the Intergenerational Transmission of Neighbourhood Effects," IZA Discussion Papers 6794, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6794

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    References listed on IDEAS

    1. Anne Bolster & Simon Burgess & Ron Johnston & Kelvyn Jones & Carol Propper & Rebecca Sarker, 2007. "Neighbourhoods, households and income dynamics: a semi-parametric investigation of neighbourhood effects," Journal of Economic Geography, Oxford University Press, vol. 7(1), pages 1-38, January.
    2. 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.
    3. George C. Galster, 2008. "Quantifying the Effect of Neighbourhood on Individuals: Challenges, Alternative Approaches, and Promising Directions," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 128(1), pages 7-48.
    4. Kunz, Jim & Page, Marianne E. & Solon, Gary, 2003. "Are point-in-time measures of neighborhood characteristics useful proxies for children's long-run neighborhood environment?," Economics Letters, Elsevier, vol. 79(2), pages 231-237, May.
    5. Lina Hedman & Maarten van Ham & David Manley, 2011. "Neighbourhood choice and neighbourhood reproduction," Environment and Planning A, Pion Ltd, London, vol. 43(6), pages 1381-1399, June.
    6. Sako Musterd & George Galster & Roger Andersson, 2012. "Temporal dimensions and measurement of neighbourhood effects," Environment and Planning A, Pion Ltd, London, vol. 44(3), pages 605-627, March.
    7. Maarten van Ham & David Manley, 2010. "The effect of neighbourhood housing tenure mix on labour market outcomes: a longitudinal investigation of neighbourhood effects," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 257-282, March.
    8. Do, D. Phuong, 2009. "The dynamics of income and neighborhood context for population health: Do long-term measures of socioeconomic status explain more of the black/white health disparity than single-point-in-time measures," Social Science & Medicine, Elsevier, vol. 68(8), pages 1368-1375, April.
    9. Galster, George, 2002. "An economic efficiency analysis of deconcentrating poverty populations," Journal of Housing Economics, Elsevier, vol. 11(4), pages 303-329, December.
    10. Martin Korpi & William A. V. Clark & Bo Malmberg, 2011. "The urban hierarchy and domestic migration: the interaction of internal migration, disposable income and the cost of living, Sweden 1993--2002," Journal of Economic Geography, Oxford University Press, vol. 11(6), pages 1051-1077, November.
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    Cited by:

    1. Nieuwenhuis, Jaap & van Ham, Maarten & Yu, Rongqin & Branje, Susan & Meeus, Wim & Hooimeijer, Pieter, 2016. "Being Poorer than the Rest of the Neighbourhood: Relative Deprivation and Problem Behaviour of Youth," IZA Discussion Papers 10220, Institute for the Study of Labor (IZA).
    2. Tom Kleinepier & Maarten van Ham, 2017. "The temporal stability of children's neighborhood experiences: A follow-up from birth to age 15," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(59), pages 1813-1826, June.
    3. Nieuwenhuis, Jaap & Tammaru, Tiit & van Ham, Maarten & Hedman, Lina & Manley, David, 2017. "Does Segregation Reduce Socio-Spatial Mobility? Evidence from Four European Countries with Different Inequality and Segregation Contexts," IZA Discussion Papers 11123, Institute for the Study of Labor (IZA).
    4. van Ham, Maarten & Tammaru, Tiit & de Vuijst, Elise & Zwiers, Merle, 2016. "Spatial Segregation and Socio-Economic Mobility in European Cities," IZA Discussion Papers 10277, Institute for the Study of Labor (IZA).

    More about this item


    hybrid model; poverty concentration; intergenerational transmission; cumulative exposure; neighbourhood effects; bespoke neighbourhoods;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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