Neighborhood Effects and Individual Unemployment

40 Pages Posted: 29 Nov 2011

See all articles by Thomas K. Bauer

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Michael Fertig

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI Essen); IZA Institute of Labor Economics

Matthias Vorell

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Multiple version iconThere are 3 versions of this paper

Date Written: November 1, 2011

Abstract

Using a unique dataset for Germany that links individual longitudinal data from the SOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment prospects. The panel setup and richness of the data allows us to overcome some of the identification problems which are present in this strand of literature. The empirical results indicate that there is a significant negative impact of neighborhood unemployment on the individual employment probability.

Keywords: social interactions, unemployment, neighborhood characteristics

JEL Classification: J64, R23

Suggested Citation

Bauer, Thomas K. and Fertig, Michael and Vorell, Matthias, Neighborhood Effects and Individual Unemployment (November 1, 2011). SOEPpaper No. 409-2011, Available at SSRN: https://ssrn.com/abstract=1965950 or http://dx.doi.org/10.2139/ssrn.1965950

Thomas K. Bauer (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

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IZA Institute of Labor Economics ( email )

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Michael Fertig

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI Essen) ( email )

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45128 Essen
Germany
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IZA Institute of Labor Economics

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

Matthias Vorell

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

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