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The Effect of Neighborhood Characteristics on Young Adult Outcomes: Alternative Estimates

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  • R. D. Plotnick
  • S. D. Hoffman

Abstract

We estimate a set of alternative models to examine the effect of neighborhood characteristics on outcomes among young adult women. The models are motivated by a concern that standard estimates of neighborhood effects may in part reflect the characteristics of families that reside in those neighborhoods. In addition to a "standard" model that includes controls for family background, we estimate fixed-effect models that also control for unobservable family characteristics that may affect young adult outcomes. To do this, we use a sample of sisters drawn from the Panel Study of Income Dynamics. In models that control for family background, we find evidence of neighborhood effects consistent with other recent work. In the fixed-effect models, however, there are no statistically significant effects that are consistent with standard hypotheses about neighborhood effects. The findings from this exploratory study suggest that one should be cautious about accepting findings of significant neighborhood effects derived from models that do not account for the possible selection of neighborhood.

Suggested Citation

  • R. D. Plotnick & S. D. Hoffman, "undated". "The Effect of Neighborhood Characteristics on Young Adult Outcomes: Alternative Estimates," Institute for Research on Poverty Discussion Papers 1106-96, University of Wisconsin Institute for Research on Poverty.
  • Handle: RePEc:wop:wispod:1106-96
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    File URL: http://www.irp.wisc.edu/publications/dps/pdfs/dp110696.pdf
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    1. 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.
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    5. Donna Ginther & Robert Haveman & Barbara Wolfe, 2000. "Neighborhood Attributes as Determinants of Children's Outcomes: How Robust Are the Relationships?," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 603-642.
    6. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 37-64, October.
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    8. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 966-991, October.
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    Cited by:

    1. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Racial and ethnic discrimination in local consumer markets: Exploiting the army's procedures for matching personnel to duty locations," Journal of Urban Economics, Elsevier, vol. 64(2), pages 496-509, September.
    2. I. Ku & R. D. Plotnick, "undated". "Do Children from Welfare Families Obtain Less Education?," Institute for Research on Poverty Discussion Papers 1217-00, University of Wisconsin Institute for Research on Poverty.
    3. Galster, George, 2002. "An economic efficiency analysis of deconcentrating poverty populations," Journal of Housing Economics, Elsevier, vol. 11(4), pages 303-329, December.
    4. Szulkin, Ryszard & Hällsten, Martin, 2009. "Families, neighborhoods, and the future: The transition to adulthood of children of native and immigrant origin in Sweden," SULCIS Working Papers 2009:9, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
    5. William A. Brock & Steven N. Durlauf, 2003. "Multinomial Choice with Social Interactions," NBER Technical Working Papers 0288, National Bureau of Economic Research, Inc.
    6. Ethan Cohen-Cole, 2005. "Resolving the Identification Problem in Linear Social Interactions Models: Modeling with Between-Group Spillovers," Others 0501001, EconWPA.
    7. Emmanuel Duguet & Yannick L'Horty & Pascale Petit, 2011. "Residential Discrimination and Ethnic Origin: An experimental assessment in the Paris suburbs," TEPP Working Paper 2011-04, TEPP.
    8. Antecol, Heather & Cobb-Clark, Deborah A., 2010. "The effect of community-level socio-economic conditions on threatening racial encounters," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 517-529, November.
    9. Galster, George & Andersson, Roger & Musterd, Sako & Kauppinen, Timo M., 2008. "Does neighborhood income mix affect earnings of adults? New evidence from Sweden," Journal of Urban Economics, Elsevier, vol. 63(3), pages 858-870, May.
    10. Basu, Kaushik, 2006. "Participatory Equity, Identity, and Productivity: Policy Implications for Promoting Development," Working Papers 06-06, Cornell University, Center for Analytic Economics.
    11. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Identity and racial harassment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 529-557, June.
    12. Linda Loury, 2006. "Teen Childbearing and Conservative Religious Communities," Discussion Papers Series, Department of Economics, Tufts University 0619, Department of Economics, Tufts University.
    13. Laura E Hill & Hans P Johnson, 2002. "The Relationship of Personal and Neighborhood Characteristics to Immigrant Fertility," Working Papers 02-20, Center for Economic Studies, U.S. Census Bureau.
    14. Nyhus, Ellen K. & Pons, Empar, 2005. "The effects of personality on earnings," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 363-384, June.
    15. Rhiannon Patterson, 2008. "Neighborhood Effects on High-School Drop-Out Rates and Teenage Childbearing: Tests for Non-Linearities, Race-Specific Effects, Interactions with Family Characteristics, and Endogenous Causation using ," Working Papers 08-12, Center for Economic Studies, U.S. Census Bureau.
    16. Linda Datcher Loury, 2004. "Teen Childbearing and Community Religiosity," Discussion Papers Series, Department of Economics, Tufts University 0405, Department of Economics, Tufts University.
    17. Anne R. Pebley & Narayan Sastry, 2003. "Neighborhoods, Poverty and Children's Well-being: A Review," Working Papers 03-04, RAND Corporation.

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