Segregation and individual employment: A longitudinal study of neighborhood effects
(English)Manuscript (preprint) (Other academic)
In this paper, we test whether individuals who live in more-segregated neighborhoods have a lower propensity to be employed. We apply an individual fixed effects strategy in order to reduce issues of self-selection and individual heterogeneity. This is possible due to access to full population micro-data, which allows us to follow the same group of individuals between 1990 and 2011. The results show that individuals who live in segregated neighborhoods are less likely to be employed, primarily in metropolitan regions. This effect is mainly driven by males with foreign background. However, it is not spatial separation per se that causes the negative effect on employment but rather the distress of segregated neighborhoods. This indicates that these neighborhoods provide fewer opportunities for labor market integration, which is particularly challenging for already disadvantaged individuals. The results thus have a strong bearing on policy concerning both integration and urban planning.
segregation, employment, neighborhood effects, social interaction
IdentifiersURN: urn:nbn:se:hj:diva-34095OAI: oai:DiVA.org:hj-34095DiVA: diva2:1050024