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Do workers make good neighbours? The impact of local employment on young male and female entrants to the labour market

Author

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  • Matthieu Solignac

    (COMPTRASEC - Centre de droit comparé du travail et de la sécurité sociale - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Masime Tô

    (UCL - University College of London [London])

Abstract

This paper investigates the social endogenous effect linking the employment probability of young workers entering the labour market to the local employment rate. We focus on the transition from school to work, using a representative sample of youths leaving the French educational system in 1998 and 2004. We identify the causal effect of local employment rate using a neighbourhood fixed-effect strategy (Bayer et al, 2007).We provide evidence that the within-neighbourhood random allocation assumption is likely to hold. The results show that an individual's own employment is strongly affected by the share of working people in their neighbourhood, estimates being higher for high-school dropouts. Results also reveal gender differences, suggesting that young people are more sensitive to same-sex neighbours.

Suggested Citation

  • Matthieu Solignac & Masime Tô, 2018. "Do workers make good neighbours? The impact of local employment on young male and female entrants to the labour market," Post-Print halshs-02005549, HAL.
    • Handle: RePEc:hal:journl:halshs-02005549
    DOI: 10.15609/annaeconstat2009.130.0167
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02005549
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    Cited by:

    1. Fabrice Gilles & Sabina Issehnane & Florent Sari, 2022. "Using short-term jobs as a way to find a regular job. What kind of role for local context?," TEPP Working Paper 2022-07, TEPP.
    2. ,, 2020. "Unemployment and Crime Victimization: a Local Approach," CEPR Discussion Papers 14947, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Local Social Interactions; Unemployment; Female Employment; Employment opportunities; Spatial analysis; Housing; Youths; Neighbourhood Effects; effets de voisinage; interactions sociales locales; chômage; travail des femmes; chance d'obtenir un emploi; analyse spatiale; logement; jeune;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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