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

Author

Listed:
  • 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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9985
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    References listed on IDEAS

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    1. Hellerstein, Judith K. & Kutzbach, Mark J. & Neumark, David, 2014. "Do labor market networks have an important spatial dimension?," Journal of Urban Economics, Elsevier, vol. 79(C), pages 39-58.
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    18. repec:hrv:faseco:33077826 is not listed on IDEAS
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    Cited by:

    1. Vincent Boucher & Marion Goussé, 2015. "Wage Dynamics and Peer Referrals," Cahiers de recherche 1514, CIRPEE.
    2. Cheti Nicoletti & Kjell G. Salvanes & Emma Tominey, 2016. "The Family Peer Effect on Mothers' Labour Supply," Discussion Papers 16/04, Department of Economics, University of York.

    More about this item

    Keywords

    neighborhood peer effects; female labor supply;

    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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