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Neighbourhood and Family Effects in Educational Progress

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  • Ben Jensen
  • Andrew Seltzer

Abstract

Increasing inequality in Australian cities has created the need for a deeper understanding of the interaction between spatial segmentation and economic outcomes. This paper offers a preliminary economic analysis of Australian neighbourhood externalities in the context of increasing segmentation. Theoretically, neighbourhoods can affect youths' economic out‐comes through their effects on school quality, information flows, job networks, and demonstration effects. We utilise a new survey of 171 year 12 students in ten Melbourne high schools to examine the impact of individual, family, and neighbourhood characteristics on the decision to attend post‐secondary education. It is shown that there exist neighbourhood externalities that affect human capital investment decisions. Finally, we offer some tentative implications for public policy.

Suggested Citation

  • Ben Jensen & Andrew Seltzer, 2000. "Neighbourhood and Family Effects in Educational Progress," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(1), pages 17-31, March.
    • Handle: RePEc:bla:ausecr:v:33:y:2000:i:1:p:17-31
    DOI: 10.1111/1467-8462.00133
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    Cited by:

    1. Yujiro Sano & Lisa Kaida & Liam Swiss, 2017. "Earnings of Immigrants in Traditional and Non-Traditional Destinations: A Case Study from Atlantic Canada," Journal of International Migration and Integration, Springer, vol. 18(3), pages 961-980, August.
    2. Harrison, Julie & Rouse, Paul, 2014. "Competition and public high school performance," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 10-19.
    3. Rossana Patrón, 2006. "Enhancing the Public Provision of Education: The Economics of Education Reform in Developing Countries," Documentos de Trabajo (working papers) 1106, Department of Economics - dECON.
    4. Mike Shields & Mark Wooden, 2003. "Investigating the Role of Neighbourhood Characteristics in Determining Life Satisfaction," Melbourne Institute Working Paper Series wp2003n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Jenny Chesters & Anne Daly, 2015. "The Determinants of Academic Achievement Among Primary School Students: A Case Study of the Australian Capital Territory," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 131-144.
    6. Eva Andersson & S.V. Subramanian, 2006. "Explorations of Neighbourhood and Educational Outcomes for Young Swedes," Urban Studies, Urban Studies Journal Limited, vol. 43(11), pages 2013-2025, October.
    7. Steve Gibbons, 2002. "Neighbourhood Effects on Educational Achievement," CEE Discussion Papers 0018, Centre for the Economics of Education, LSE.
    8. Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009. "Life satisfaction and the economic and social characteristics of neighbourhoods," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 421-443, April.

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