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Neighbourhood Poverty and Individual Earnings: Tales of Two (Norwegian) Cities

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  • Viggo Nordvik
  • Lena Magnusson Turner
  • Jürgen Friedrichs

Abstract

Across cities, one observes similarities in poverty and earnings of individuals within the same neighbourhood. Are these similarities due to causal influences neighbours exercise upon each other or to spatial sorting? We analyse this within the frame of a fixed effects model, estimated on a register‐based panel covering all residents of two urban areas in Norway over the years from 1997 to 2011. We find a significant depressing effect of the share of low‐earners in the neighbourhood on individual earnings in the capital region ‐ Oslo. Our estimates of the impact of neighbourhood poverty are small in magnitude compared to what is found in other studies. In the other, less central area studied, we do not find any such effect. It is tempting to speculate that sorting and neighbourhood effects are less intense in urban regions with a smaller menu of neighbourhood choices. [Correction added on 30 July 2019, after first publication: The Abstract has been modified for improvement in this version.]

Suggested Citation

  • Viggo Nordvik & Lena Magnusson Turner & Jürgen Friedrichs, 2020. "Neighbourhood Poverty and Individual Earnings: Tales of Two (Norwegian) Cities," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(2), pages 134-148, April.
    • Handle: RePEc:bla:tvecsg:v:111:y:2020:i:2:p:134-148
    DOI: 10.1111/tesg.12370
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