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Neighbourhood effects in small neighbourhoods

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  • Overman, Henry G.

Abstract

This paper uses data on a sample of Australian teenagers to test for neighbourhood effects on school dropout rates. The data allows us to test for neighbourhood effects at two different spatial scales. We find that educational composition of the larger neighbourhood can influence the dropout rate. We argue that this is most likely to reflect the structure of local labour market demand. We also find that low socio-economic status of the immediate neighbourhood has an adverse impact on dropout rate. This suggests that government policy may need to consider the socio-economic composition of quite small geographical areas if it considers interfering in the market to create greater income mixing within neighbourhoods.

Suggested Citation

  • Overman, Henry G., 2002. "Neighbourhood effects in small neighbourhoods," LSE Research Online Documents on Economics 585, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:585
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    File URL: http://eprints.lse.ac.uk/585/
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    References listed on IDEAS

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    1. F Green & Steven McIntosh, 2000. "Working on the Chain Gang? An Examination of Rising Effort Levels in Europe in the 1990s," CEP Discussion Papers dp0465, Centre for Economic Performance, LSE.
    2. Burgess, Simon & Turon, Helene, 2000. "Unemployment dynamics, duration and equilibrium: evidence from Britain," LSE Research Online Documents on Economics 20162, London School of Economics and Political Science, LSE Library.
    3. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
    4. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
    5. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    6. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
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    Cited by:

    1. 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.
    2. Roger Vincent Patulny & Alan Morris, 2012. "Questioning the Need for Social Mix: The Implications of Friendship Diversity amongst Australian Social Housing Tenants," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3365-3384, November.
    3. de Vuijst, Elise & van Ham, Maarten, 2017. "Educational Attainment and Neighbourhood Outcomes: Differences between Highly-Educated Natives and Non-Western Ethnic Minorities in the Netherlands," IZA Discussion Papers 10999, Institute of Labor Economics (IZA).
    4. Gideon Bolt & Ronald van Kempen & Maarten van Ham, 2008. "Minority Ethnic Groups in the Dutch Housing Market: Spatial Segregation, Relocation Dynamics and Housing Policy," Urban Studies, Urban Studies Journal Limited, vol. 45(7), pages 1359-1384, June.
    5. Christian Kweku Darko & Fiona Carmichael, 2020. "Education of Biological and Fostered Children in Ghana: The Influence of Relationships with the Household Head and Household Structure," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 487-504, May.
    6. de Vuijst, Elise & van Ham, Maarten & Kleinhans, Reinout, 2015. "The Moderating Effect of Higher Education on Intergenerational Spatial Inequality," IZA Discussion Papers 9557, Institute of Labor Economics (IZA).
    7. Steve Gibbons, 2002. "Neighbourhood Effects on Educational Achievement," CEE Discussion Papers 0018, Centre for the Economics of Education, LSE.
    8. Toriqul Bashar & Glen Bramley, 2019. "Social capital and neighbourhood cooperation: Implications for development of the urban poor in LDCs," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2727-2745, October.
    9. Cheng Boon Ong, 2017. "Tipping points in Dutch big city neighbourhoods," Urban Studies, Urban Studies Journal Limited, vol. 54(4), pages 1016-1037, March.
    10. Petrović, Ana & Manley, David & van Ham, Maarten, 2018. "Freedom from the Tyranny of Neighbourhood: Rethinking Socio-Spatial Context Effects," IZA Discussion Papers 11416, Institute of Labor Economics (IZA).
    11. David Manley & Maarten van Ham, 2011. "Living in deprived neighbourhoods in Scotland. Occupational mobility and neighbourhood effects," ERSA conference papers ersa10p547, European Regional Science Association.
    12. Maarten van Ham & William A V Clark, 2009. "Neighbourhood Mobility in Context: Household Moves and Changing Neighbourhoods in the Netherlands," Environment and Planning A, , vol. 41(6), pages 1442-1459, June.
    13. Clive Barnett & Gary Bridge, 2016. "The Situations of Urban Inquiry: Thinking Problematically about the City," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(6), pages 1186-1204, November.

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    More about this item

    Keywords

    Neighbourhood effects; education decisions; housing policy.;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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