Abstract

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The Neighbourhood Is Not What It Used to Be


Oddbjorn Raaum


University of Oslo - Ragnar Frisch Centre for Economic Research

Kjell G. Salvanes


Norwegian School of Economics (NHH) - Department of Economics; Institute for the Study of Labor (IZA)

Erik Ø. Sørensen


Norwegian School of Economics (NHH) - Department of Economics

December 2003

IZA Discussion Paper No. 952

Abstract:     
Using a variance decomposition framework which provides bounds on the effect of families and neighbourhoods, we find important effects of family characteristics and residential location on educational attainment and adult earnings in Norway. Neighbourhoods are less important than families, as the correlations among siblings are significantly higher than among children growing up in the same local community. The impact of neighbourhoods is reduced by half from 1960 to 1970 and we link this result to several policy changes in the 1960s aimed at increasing equality of opportunity in Norway. Neighbour correlations in Norway are found to be significantly lower than in the United States.

Number of Pages in PDF File: 35

Keywords: education, earnings, neighbours, families, peer-effects

JEL Classification: I21, J13, R23

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Date posted: January 12, 2004  

Suggested Citation

Raaum, Oddbjorn and Salvanes, Kjell G. and Sørensen, Erik Ø., The Neighbourhood Is Not What It Used to Be (December 2003). IZA Discussion Paper No. 952. Available at SSRN: http://ssrn.com/abstract=480027

Contact Information

Oddbjorn Raaum
University of Oslo - Ragnar Frisch Centre for Economic Research ( email )
Gaustadalleen 21
N-0317 Oslo
Norway
Kjell G. Salvanes (Contact Author)
Norwegian School of Economics (NHH) - Department of Economics ( email )
Helleveien 30
N-5035 Bergen
Norway
+47 5 595 9315 (Phone)
+47 5 595 9543 (Fax)

Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Erik Ø. Sørensen
Norwegian School of Economics (NHH) - Department of Economics ( email )
Helleveien 30
N-5035 Bergen
Norway
+47 55 95 92 81 (Phone)
+47 55 95 95 43 (Fax)
HOME PAGE: http://homepage.mac.com/sameos/research/

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