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Neighbourhood Income Sorting and the Effects of Neighbourhood Income Mix on Income: A Holistic Empirical Exploration
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Institute for Housing and Urban Research.
Wayne State University, Detroit, USA.
2013 (English)In: Urban Studies, ISSN 0042-0980, E-ISSN 1360-063X, Vol. 50, no 1, 107-127 p.Article in journal (Refereed) Published
Abstract [en]

An econometric model is specified in which an individual’s income and the income mix of the neighbourhood in which the individual resides are endogenous, thus providing a holistic model of phenomena that previously have been fragmented into neighbourhood effects and neighbourhood selection literatures. To overcome the biases from selection and endogeneity, the parameters of this model are estimated using instrumental variables in a fixed-effect panel analysis employing annual data on 90 438 working-age males in Stockholm over the 1995–2006 period. Evidence is found of both neighbourhood effects and neighbourhood selection, but more importantly, it is found that the magnitudes of these effects are substantially altered when taking selection and endogeneity biases into account, compared with when only controlling for selection. When taking endogeneity into account, the apparent impact of neighbourhood income mix on individual income is magnified and the effect of individual income on the percentage of high income in the neighbourhood is magnified.

Place, publisher, year, edition, pages
2013. Vol. 50, no 1, 107-127 p.
National Category
Social Sciences
URN: urn:nbn:se:uu:diva-181572DOI: 10.1177/0042098012452320ISI: 000312548000008OAI: oai:DiVA.org:uu-181572DiVA: diva2:556855
Available from: 2012-09-26 Created: 2012-09-26 Last updated: 2016-04-22Bibliographically approved
In thesis
1. Residential Mobility and Neighbourhood Effects: A Holistic Approach
Open this publication in new window or tab >>Residential Mobility and Neighbourhood Effects: A Holistic Approach
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The number of studies estimating neighbourhood effects has increased rapidly during the last two decades. Although results from these studies vary, a majority find at least small effects. But to what extent can we trust these estimates? Neighbourhood effect studies face many serious methodological challenges, of which some are related to the fact that people move. The mobility of individuals may cause neighbourhoods to change over time, result in exposure times that are too short and seriously bias estimates. These methodological problems have not been given enough attention in the neighbourhood effect literature: no study controls for them all, and implications of mobility are rarely included in theoretical discussions of neighbourhood effects.

In a comprehensive summary and five different papers, I argue that the two scholarly fields of residential mobility and neighbourhood effect studies are intrinsically connected and that any arbitrary separation between the two is both conceptually problematic and risks leading to erroneous conclusions. Studies of neighbourhood effects must address the problems caused by mobility, before it can be convincingly argued that results actually show neighbourhood effects. To do this, longitudinal data are necessary. Furthermore, the connection between the two fields may also have implications for studies of residential mobility.

Place, publisher, year, edition, pages
Uppsala: Acta Universitatis Upsaliensis, 2011. i-vii, 52 p.
Geografiska regionstudier, ISSN 0431-2023 ; 88
neighbourhood effect, residential mobility, selection, method, bias
National Category
Social Sciences Human Geography
Research subject
Social and Economic Geography
urn:nbn:se:uu:diva-160428 (URN)978-91-506-2246-1 (ISBN)
Public defence
2011-12-09, Universitetshuset, sal IV, Biskopsgatan 3, Uppsala, 10:15 (English)
Available from: 2011-11-18 Created: 2011-10-24 Last updated: 2016-04-22Bibliographically approved

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