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Health in the cities: When the neighborhood matters more than income

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  • Bilger, Marcel
  • Carrieri, Vincenzo

Abstract

Using a rich Italian cross-sectional dataset, we estimate the effect of a neighborhood problems aggregate (including pollution, crime, and noise) on self-assessed health, presence of chronic conditions and limitations in daily activities. We address the self-selection of the residents in their neighborhoods, as well as the possible endogeneity of income with respect to health, through instrumental variable methods and several endogeneity tests. The main novelty is the sound estimation of the neighborhood effect on health using observational data, which has the advantage of providing general results that are not dependent on any experimental design. This allows us to fully compare the neighborhood effect with the traditional socioeconomic determinants of health. Our main findings are that low quality neighborhoods are strongly health damaging. This effect is comparable to the primary/upper secondary education health differential and is even higher than the impact that poor economic circumstances have on health.

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  • Bilger, Marcel & Carrieri, Vincenzo, 2013. "Health in the cities: When the neighborhood matters more than income," Journal of Health Economics, Elsevier, vol. 32(1), pages 1-11.
  • Handle: RePEc:eee:jhecon:v:32:y:2013:i:1:p:1-11
    DOI: 10.1016/j.jhealeco.2012.09.010
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    7. Daniel Kuehnle, 2013. "The causal effect of family income on child health: A re-examination using an instrumental variables approach," Working Papers 133, Bavarian Graduate Program in Economics (BGPE).
    8. Jofre-Bonet, M. & Rossello-Roig, M. & Serra-Sastre, V., 2016. "The Blow of Domestic Violence on Children's Health Outcomes," Working Papers 16/02, Department of Economics, City University London.
    9. Ashlesha Datar & Nancy Nicosia & Anya Samek, 2022. "Heterogeneity in Place Effects on Health: The Case of Time Preferences and Adolescent Obesity," NBER Working Papers 29935, National Bureau of Economic Research, Inc.
    10. Kati Orru & Pekka Tiittanen & Sari Ung-Lanki & Hans Orru & Timo Lanki, 2022. "Perception of Risks from Wood Combustion and Traffic Induced Air Pollution: Evidence from Northern Europe," Sustainability, MDPI, vol. 14(15), pages 1-17, August.
    11. Jofre-Bonet, Mireia & Rossello-Roig, Melcior & Serra-Sastre, Victoria, 2024. "Intimate partner violence and children's health outcomes," LSE Research Online Documents on Economics 121995, London School of Economics and Political Science, LSE Library.
    12. Datar, Ashlesha & Nicosia, Nancy & Samek, Anya, 2023. "Heterogeneity in place effects on health: The case of time preferences and adolescent obesity," Economics & Human Biology, Elsevier, vol. 49(C).
    13. Marcel Bilger & Eliza J. Kruger & Eric A. Finkelstein, 2017. "Measuring Socioeconomic Inequality in Obesity: Looking Beyond the Obesity Threshold," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1052-1066, August.
    14. Kuehnle, Daniel, 2014. "The causal effect of family income on child health in the UK," Journal of Health Economics, Elsevier, vol. 36(C), pages 137-150.
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    16. Pasqualini, M. & Lanari, D. & Minelli, L. & Pieroni, L. & Salmasi, L., 2017. "Health and income inequalities in Europe: What is the role of circumstances?," Economics & Human Biology, Elsevier, vol. 26(C), pages 164-173.
    17. Stefan Angel & Benjamin Bittschi, 2019. "Housing and Health," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(3), pages 495-513, September.
    18. Powdthavee, Nattavudh & Oswald, Andrew J., 2020. "Is there a link between air pollution and impaired memory? Evidence on 34,000 english citizens," Ecological Economics, Elsevier, vol. 169(C).
    19. Mauricio Sarrias & Benjamin Jara, 2020. "How Much Should We Pay for Mental Health Deterioration? The Subjective Monetary Value of Mental Health After the 27F Chilean Earthquake," Journal of Happiness Studies, Springer, vol. 21(3), pages 843-875, March.
    20. Nádia Simões & Nuno Crespo & Sandrina B. Moreira & Celeste A. Varum, 2016. "Measurement and determinants of health poverty and richness: evidence from Portugal," Empirical Economics, Springer, vol. 50(4), pages 1331-1358, June.
    21. Bruno Chiarini & Antonella D'Agostino & Elisabetta Marzano & Andrea Regoli, 2017. "Housing Environmental Risk in Urban Areas: Cross Country Comparison and Policy Implications," CESifo Working Paper Series 6822, CESifo.
    22. Nunzia Nappo, 2019. "Is there an association between working conditions and health? An analysis of the Sixth European Working Conditions Survey data," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-15, February.
    23. Yi Fan & Ho Pin Teo & Wayne X. Wan, 2021. "Public transport, noise complaints, and housing: Evidence from sentiment analysis in Singapore," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 570-596, June.
    24. Stefan Angel, 2016. "The Effect of Over-Indebtedness on Health: Comparative Analyses for Europe," Kyklos, Wiley Blackwell, vol. 69(2), pages 208-227, May.

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    More about this item

    Keywords

    Neighborhood effect; Neighborhood problems aggregate; Health; Endogeneity; Instrumental variables;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • 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

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