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Segregation and individual employment: A longitudinal study of neighborhood effects
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0001-5722-2016
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).
(English)Manuscript (preprint) (Other academic)
Abstract [en]

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.

Keyword [en]
segregation, employment, neighborhood effects, social interaction
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-34095OAI: oai:DiVA.org:hj-34095DiVA: diva2:1050024
Available from: 2016-11-28 Created: 2016-11-28 Last updated: 2016-11-28Bibliographically approved
In thesis
1. Regional diversity and economic performance
Open this publication in new window or tab >>Regional diversity and economic performance
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of an introductory chapter and four individual papers. In each paper the relationship between some form of spatial diversity and economic performance is analyzed. Diversity is treated as a potential source of externality effects, mainly in the form of knowledge spillovers.

The first paper studies the impact of a broad range of spatial externalities on the productivity of manufacturing plants. While finding positive effects of specialization and competition, there is no support for positive spillovers of either related or unrelated industry diversity. The second paper argues that relatedness should be framed at the level of individuals and consequently should be measured in terms of, for example, education and occupation rather than industry belonging. The results show that educational- and occupational related diversity matter for regional productivity growth, while related industry diversity is positively related to employment growth.

The third paper analyzes the importance of neighborhood related diversity, in terms of both industries and education, and internal human capital for firms’ propensity to innovate. The findings support that education and skills are strongly related to firm innovation. Additionally, firms in metropolitan regions are more innovative in neighborhoods with more related diversity in industries, while firms in rural regions seem to benefit more from related diversity in education. In the fourth paper, the location factor of interest is segregation, which may be regarded as inverse diversity. The results show that neighborhood segregation has a negative effect on individual employment. However, it is not the spatial separation of individuals with different backgrounds that causes lower employment but rather the distress of segregated neighborhoods.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2016. 48 p.
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 112
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-34097 (URN)978-91-86345-71-6 (ISBN)
Public defence
2016-12-16, B1014, Jönköping International Business School, Jönköping, 10:00 (English)
Opponent
Supervisors
Available from: 2016-11-28 Created: 2016-11-28 Last updated: 2016-11-28Bibliographically approved

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Citation style
  • apa
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Language
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