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Neighborhood Effects, Peer Classification, and the Decision of Women to Work

Author

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  • Mota, Nuno

    (Fannie Mae)

  • Patacchini, Eleonora

    (Cornell University)

  • Rosenthal, Stuart S.

    (Syracuse University)

Abstract

We examine the influence of neighborhood peer effects on the decision of women to work using panel data that follows clusters of adjacent homes between 1985-1993. Modeling assumptions imply rank order restrictions that enable us to classify individuals into peer groups while identifying peer effects and underlying mechanisms. For women, peer effects influence labor supply in part because women appear to emulate the work behavior of nearby women with similar age children. For men, peer effects are mostly absent, consistent with inelastic work decisions. Geographically concentrated panel data are crucial for these estimates. Our approach could also be applied to other instances in which neighborhood peer effects are important.

Suggested Citation

  • Mota, Nuno & Patacchini, Eleonora & Rosenthal, Stuart S., 2016. "Neighborhood Effects, Peer Classification, and the Decision of Women to Work," IZA Discussion Papers 9985, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9985
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    References listed on IDEAS

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    3. Afridi, Farzana & Dhillon, Amrita & Roy, Sanchari & Sangwan, Nikita, 2023. "Social Networks, Gender Norms and Labor Supply: Experimental Evidence Using a Job Search Platform," CAGE Online Working Paper Series 677, Competitive Advantage in the Global Economy (CAGE).
    4. Cavapozzi, Danilo & Francesconi, Marco & Nicoletti, Cheti, 2021. "The impact of gender role norms on mothers’ labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 113-134.
    5. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    6. Goulas, Sofoklis & Megalokonomou, Rigissa & Zhang, Yi, 2025. "Female neighbors and careers in science," Research Policy, Elsevier, vol. 54(7).
    7. Cheti Nicoletti & Kjell G. Salvanes & Emma Tominey, 2018. "The Family Peer Effect on Mothers' Labor Supply," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 206-234, July.
    8. Acerenza, Santiago & Gandelman, Nestor & Misail, Daniel, 2025. "Neighborhood impacts on human capital accumulation of adolescents and young adults in Montevideo," Regional Science and Urban Economics, Elsevier, vol. 111(C).
    9. Zhao, Liqiu & Zhao, Zhong, 2021. "Disruptive Peers in the Classroom and Students’ Academic Outcomes: Evidence and Mechanisms," Labour Economics, Elsevier, vol. 68(C).
    10. Bredtmann, Julia & Otten, Sebastian, 2025. "Natives’ gender norms and the labor market integration of female immigrants," World Development, Elsevier, vol. 185(C).
    11. Sophia Schmitz & C. Katharina Spieß, 2021. "The Importance of Mothers-in-Law's Employment for Their Daughter-in-Law's Labour Market Outcomes in West-Germany: Results and Mechanisms," Discussion Papers of DIW Berlin 1932, DIW Berlin, German Institute for Economic Research.
    12. Dhamija, Gaurav & Mookerjee, Mehreen & Ojha, Manini & Roy, Sanket, 2024. "Attitudes and norms about intimate partner violence: What makes women more impressionable?," GLO Discussion Paper Series 1486, Global Labor Organization (GLO).

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    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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