Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects

Posted: 17 Jul 2008

See all articles by Anne Bolster

Anne Bolster

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Kelvyn Jones

University of Bristol - School of Geographical Sciences

Carol Propper

Imperial College London Business School; Centre for Economic Policy Research (CEPR); University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Date Written: January 2007

Abstract

Using a unique data set, we present evidence on income trajectories of people living in micro-neighbourhoods. We investigate neighbourhood influences making as few parametric assumptions as possible. The article offers a number of advances. We exploit a data set that is large, representative, longitudinal, with very local neighbourhoods. We analyse income growth over 1-, 5- and 10-year windows. We analyse the whole distribution of income growth and track large gainers and losers as well as averages. We consider the appropriate definition of neighbourhood. We find no evidence of a negative relationship between neighbourhood disadvantage and subsequent income growth; indeed, some evidence of a positive relationship.

Keywords: neighbourhood effects, income dynamics, small-scale neighbourhoods

JEL Classification: I30, D31

Suggested Citation

Bolster, Anne and Jones, Kelvyn and Propper, Carol, Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects (January 2007). Journal of Economic Geography, Vol. 7, Issue 1, pp. 1-38, 2007. Available at SSRN: https://ssrn.com/abstract=1161757 or http://dx.doi.org/10.1093/jeg/lbl013

Anne Bolster (Contact Author)

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

Kelvyn Jones

University of Bristol - School of Geographical Sciences ( email )

University Road
Bristol BS8 1SS
United Kingdom

Carol Propper

Imperial College London Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/propper.htm

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