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Searching for the Best Neighborhood: Mobility and Social Interactions

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  • Yannis M. Ioannides
  • Giulio Zanella

Abstract

The paper seeks to contribute to the social interactions literature by exploiting data on individuals’ self-selection into neighborhoods. We study a model in which households search for the best location in the presence of neighborhood effects in the formation of children’s human capital and in the process of cultural transmission. We use micro data from the PSID which we have merged, using geocodes, with contextual information at the levels of census tracts and of counties from the 2000 US Census. We control for numerous individual characteristics and neighborhood attributes and find, consistently with neighbourhood effects models, that households with children, but not those without, are more likely to move out of neighborhoods whose attributes are not favorable to the production of human capital and the transmission of parents’ cultural traits, and to move into neighborhoods which instead exhibit desirable such attributes.

Suggested Citation

  • Yannis M. Ioannides & Giulio Zanella, 2008. "Searching for the Best Neighborhood: Mobility and Social Interactions," Department of Economics University of Siena 533, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:533
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    Cited by:

    1. Alberto Bisin & Andrea Moro & Giorgio Topa, 2011. "The empirical content of models with multiple equilibria in economies with social interactions," Staff Reports 504, Federal Reserve Bank of New York.
    2. Fausto Galli & Giuseppe Russo, 2013. "Immigration Restriction and Long-Run Cultural Assimilation: Theory and Quasi-Experimental Evidence," CSEF Working Papers 349, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Fausto Galli & Giuseppe Russo, 2019. "Immigration restrictions and second-generation cultural assimilation: theory and quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 23-51, January.
    4. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
    5. Bezin, Emeline & Moizeau, Fabien, 2017. "Cultural dynamics, social mobility and urban segregation," Journal of Urban Economics, Elsevier, vol. 99(C), pages 173-187.
    6. Yannis M. Ioannides, 2008. "Full Solution of an Endogenous Sorting Model with Contextual and Income Effects," Discussion Papers Series, Department of Economics, Tufts University 0724, Department of Economics, Tufts University.

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    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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