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Distinguishing neighbourhood and workplace network effects on individual income: evidence from Sweden

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  • Charlotta Mellander
  • Kevin Stolarick
  • José Lobo

Abstract

Distinguishing neighbourhood and workplace network effects on individual income: evidence from Sweden. Regional Studies. This paper investigates the effects on individuals’ income of two social networks in which individuals are embedded: their residential neighbourhood and their workplace. The paper avails itself of Swedish micro-level data, which make it possible to identify individual workers, and with whom they live next to and work. The spatial extent of the non-workplace social network – from block group to the whole of a metropolitan area – is varied to examine which social community most affects an individual’s income. The paper distinguishes between individuals engaged in high- and low-skilled occupations so as to starkly control for differences in education, training and skills. The results suggest that residential neighbourhoods do matter for individuals’ income, although the effect is stronger for low-skilled individuals. For both high- and low-skilled individuals, their workplace group skill has the greatest effect on income, but the effect is negative for high-skilled and positive for low-skilled individuals.

Suggested Citation

  • Charlotta Mellander & Kevin Stolarick & José Lobo, 2017. "Distinguishing neighbourhood and workplace network effects on individual income: evidence from Sweden," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1652-1664, November.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:11:p:1652-1664
    DOI: 10.1080/00343404.2016.1236187
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    References listed on IDEAS

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    1. Roemer, J-E & Wets, R-J-B, 1994. "Neighborhood Effects on Belief Formation and the Distribution of Education and Income," Papers 94-02, California Davis - Institute of Governmental Affairs.
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    Cited by:

    1. Gundi Knies & Patricia C Melo & Min Zhang, 2021. "Neighbourhood deprivation, life satisfaction and earnings: Comparative analyses of neighbourhood effects at bespoke scales," Urban Studies, Urban Studies Journal Limited, vol. 58(13), pages 2640-2659, October.
    2. José Lobo & Charlotta Mellander, 2020. "Let’s stick together: Labor market effects from immigrant neighborhood clustering," Environment and Planning A, , vol. 52(5), pages 953-980, August.
    3. Kai Zhao & Yuesheng Zhang & Jinkai Zhao & Xiaojing Li, 2020. "Understanding Contributions of the Creative Class to Sustainable Economic Growth in China," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    4. Lobo, José & Mellander, Charlotta, 2019. "Let’s Stick Together: Labor Market Effects from Immigrant Neighborhood Clustering," Working Paper Series in Economics and Institutions of Innovation 475, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Kai Zhao & Yuesheng Zhang & Jinkai Zhao, 2020. "Exploring the Complexity of Location Choices of the Creative Class in Europe: Evidence from the EU Labor Force Survey 1995–2010," Sustainability, MDPI, vol. 12(4), pages 1-22, February.
    6. Anna Baranowska-Rataj & Zoltán Elekes & Rikard Eriksson, 2021. "Escaping from Low-Wage Employment: The Role of Co-worker Networks," CERS-IE WORKING PAPERS 2123, Institute of Economics, Centre for Economic and Regional Studies.

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