Neighbourhood Choice and Neighbourhood Reproduction

21 Pages Posted: 18 Oct 2010

See all articles by Lina Bergström

Lina Bergström

affiliation not provided to SSRN

Maarten van Ham

Delft University of Technology - OTB Research Institute for Housing, Urban and Mobility Studies; University of St. Andrews; IZA Institute of Labor Economics

David Manley

University of St. Andrews

Abstract

Although we know a lot about why households choose certain dwellings, we know relatively little about the mechanisms behind neighbourhood choice. Most studies of neighbourhood choice only focus on one or two dimensions of neighbourhoods: typically poverty and ethnicity. This paper argues that neighbourhoods have multiple dimensions and that models of neighbourhood choice should take these dimensions into account. We propose the use of a conditional logit model. From this approach we can gain insight into the interaction between individual and neighbourhood characteristics which lead to the choice of a particular neighbourhood over alternative destinations. We use Swedish register data to model neighbourhood choice for all households which moved to a neighbourhood in the city of Uppsala between 1997 and 2006. Our results show that neighbourhood sorting is a highly structured process where households are very likely to choose neighbourhoods where the neighbourhood population matches their own characteristics.

Keywords: neighbourhood, housing choice, sorting, residential mobility, conditional logit, Sweden

JEL Classification: I30, J60, R23

Suggested Citation

Bergström, Lina and van Ham, Maarten and Manley, David, Neighbourhood Choice and Neighbourhood Reproduction. IZA Discussion Paper No. 5238, Available at SSRN: https://ssrn.com/abstract=1693335

Lina Bergström (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Maarten Van Ham

Delft University of Technology - OTB Research Institute for Housing, Urban and Mobility Studies ( email )

P.O. Box 5043
2600 GA Delft
Netherlands
+31 15 278 2782 (Phone)

HOME PAGE: http://www.maartenvanham.nl

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

David Manley

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

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