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The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes

Author

Listed:
  • Markussen, Simen

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

Abstract

Based on Norwegian administrative registers we provide new empirical evidence on the effects of the childhood neighborhood's socioeconomic status on educational and labor market performance. A neighborhood's status is measured annually by its prime age inhabitants' earnings ranks within larger commuting zones, and the childhood neighborhood status is the average status of the neighborhoods inhabited from birth to age 15. Identification of causal effects relies on within-family comparisons. Our results reveal a hump-shaped relationship between the socioeconomic status of the childhood neighborhood and school results at age 15-16, such that the optimal neighborhood is of medium rank. The top-ranked neighbor-hoods are as bad as the bottom-ranked. Similar results are obtained for educational and labor market outcomes measured at higher ages.

Suggested Citation

  • Markussen, Simen & Røed, Knut, 2018. "The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes," IZA Discussion Papers 11684, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11684
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    References listed on IDEAS

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    1. Raj Chetty & Nathaniel Hendren, 2018. "The Impacts of Neighborhoods on Intergenerational Mobility I: Childhood Exposure Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1107-1162.
    2. Daniel Aaronson, 1998. "Using Sibling Data to Estimate the Impact of Neighborhoods on Children's Educational Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 915-946.
    3. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    4. Katz, Lawrence & Duncan, Greg J. & Kling, Jeffrey R. & Kessler, Ronald C. & Ludwig, Jens & Sanbonmatsu, Lisa & Liebman, Jeffrey B., 2008. "What Can We Learn about Neighborhood Effects from the Moving to Opportunity Experiment?," Scholarly Articles 2766959, Harvard University Department of Economics.
    5. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    6. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    7. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    8. Kelly Bedard & Elizabeth Dhuey, 2006. "The Persistence of Early Childhood Maturity: International Evidence of Long-Run Age Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1437-1472.
    9. Markussen, Simen & Røed, Knut, 2017. "Egalitarianism under Pressure: Toward Lower Economic Mobility in the Knowledge Economy?," IZA Discussion Papers 10664, Institute of Labor Economics (IZA).
    10. Benjamin Elsner & Ingo E. Isphording, 2018. "Rank, Sex, Drugs, and Crime," Journal of Human Resources, University of Wisconsin Press, vol. 53(2), pages 356-381.
    11. Raj Chetty & Nathaniel Hendren, 2018. "The Impacts of Neighborhoods on Intergenerational Mobility II: County-Level Estimates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1163-1228.
    12. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    13. Tuomas Pekkarinen & Kjell G. Salvanes & Matti Sarvimäki, 2017. "The Evolution of Social Mobility: Norway during the Twentieth Century," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 5-33, January.
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    Cited by:

    1. Tora K. Knutsen & Jørgen Modalsli & Marte Rønning, 2020. "Distance and choice of field. Evidence from a Norwegian college expansion reform," Discussion Papers 932, Statistics Norway, Research Department.

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    More about this item

    Keywords

    segregation; neighborhood effects; educational outcomes; social mobility;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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