Does Neighborhood Income Mix Affect Earnings of Adults?: New Evidence from Sweden

Does Neighborhood Income Mix Affect Earnings of Adults? : New Evidence from Sweden

This paper contributes to the literature on obtaining unbiased estimates of neighborhood effects, explored in the context of a centralized social welfare state. We employ a longitudinal database comprised of all working age adults in metropolitan Sweden 1991-1999 to investigate the degree to which neighborhood income mix relates to subsequent labor incomes of adults and how this relationship varies by gender and employment status. We control for unobserved, time-invariant individual characteristics by estimating a first-difference equation of changes in average incomes between the 1991-1995 and 1996-1999 periods. We further control for unobserved time varying characteristics through an analysis of non-movers. These methods substantially reduce the magnitude of the apparent effect of neighborhood shares of low-, middle- and high-income males. Nevertheless, statistically and substantively significant neighborhood effects persist, though relationships are nonlinear and vary by gender and employment status. Males who are not fully employed appear most sensitive to neighborhood economic mix in all contexts.

Andersson, RogerUppsala universitet,Institutet för bostads- och urbanforskning (IBF)(Swepub:uu)rogeras (författare)
Musterd, Sako (författare)
Kauppinen, Timo M. (författare)
Uppsala universitetInstitutet för bostads- och urbanforskning (IBF) (creator_code:org_t)

Ingår i:Journal of Urban Economics: Elsevier BV63:3, s. 858-8700094-11901095-9068

Av författaren/redakt...: Galster, George; Andersson, Roger; Musterd, Sako; Kauppinen, Timo ...

Om ämnet

Kungliga biblioteket hanterar dina personuppgifter i enlighet med EU:s dataskyddsförordning (2018), GDPR. Läs mer om hur det funkar här.
Så här hanterar KB dina uppgifter vid användning av denna tjänst.