Arbeitspapier

Understanding neighbourhood effects: Selection bias and residential mobility

The number of studies investigating neighbourhood effects has increased rapidly over the last two decades. Although many of these studies claim to have found evidence for neighbourhood effects, most 'evidence' is likely the result of reversed causality. The main challenge in modelling neighbourhood effects is the (econometric) identification of causal effects. The most severe problem is selection bias as a result of selective sorting into neighbourhoods. This paper argues that in order to further our understanding of neighbourhood effects we should explicitly incorporate neighbourhood sorting into our models. Neighbourhood effect studies are in the situation where the processes behind one of its key methodological problems (selection bias) are also critical to fully understand the neighbourhood context itself. It is thus remarkable that residential mobility and neighbourhood sorting has been almost completely ignored in the neighbourhood effects literature.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5193

Classification
Wirtschaft
Welfare, Well-Being, and Poverty: General
Mobility, Unemployment, Vacancies, and Immigrant Workers: General
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Subject
neighbourhoods
selective mobility
neighbourhood effects
selection bias
migration
residential mobility
Nachbarschaftsökonomie
Wohnstandort
Bias
Kausalanalyse
Schätzung
Stockholm

Event
Geistige Schöpfung
(who)
Bergström, Lina
Ham, Maarten van
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bergström, Lina
  • Ham, Maarten van
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2010

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