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The Neighbourhood is Not What it Used to BeOddbjorn RaaumUniversity of Oslo - Ragnar Frisch Centre for Economic Research Kjell G. SalvanesNorwegian School of Economics (NHH) - Department of Economics; Institute for the Study of Labor (IZA) Erik Ø. SørensenNorwegian School of Economics (NHH) - Department of Economics Economic Journal, Vol. 116, No. 508, pp. 200-222, January 2006 Abstract: Using a variance decomposition framework that bounds the effect of families and neighbourhoods, we find important effects of family characteristics and residential location on adult education and 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. 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 US.
Number of Pages in PDF File: 23 Accepted Paper SeriesDate posted: May 8, 2006Suggested CitationContact Information
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