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Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects

Author

Listed:
  • Johnston, Ron
  • Burgess, Simon
  • Propper, Carol
  • Bolster, Anne
  • Sarker, Rebecca
  • Jones, Kelvyn

Abstract

Using a unique dataset, we present evidence on income trajectories of people living in micro neighbourhoods. We place bounds on the influence of neighbourhood making as few parametric assumptions as possible. The Paper offers a number of advances. We exploit a dataset that is large, representative, longitudinal with very local neighbourhoods. We analyse income growth over one, five- and ten-year windows. We analyse the whole distribution of income growth and track large gainers and losers as well as average outcomes. We consider the appropriate definition of neighbourhood. We find little evidence of a negative relationship between neighbourhood and subsequent income growth.

Suggested Citation

  • Johnston, Ron & Burgess, Simon & Propper, Carol & Bolster, Anne & Sarker, Rebecca & Jones, Kelvyn, 2004. "Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects," CEPR Discussion Papers 4611, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4611
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    References listed on IDEAS

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    4. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 607-654.
    5. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    6. Brock,W.A. & Durlauf,S.N., 2003. "Multinomial choice with social interactions," Working papers 1, Wisconsin Madison - Social Systems.
    7. Andrew McCulloch, 2001. "Ward-Level Deprivation and Individual Social and Economic Outcomes in the British Household Panel Study," Environment and Planning A, , vol. 33(4), pages 667-684, April.
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    More about this item

    Keywords

    Neighbourhood effects; Income dynamics; Small scale neighbourhoods;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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