Cumulative Exposure to Disadvantage and the Intergenerational Transmission of Neighbourhood Effects

22 Pages Posted: 6 Oct 2012

See all articles by Lina Hedman

Lina Hedman

Uppsala University

David Manley

University of St. Andrews

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

John Östh

Uppsala University

Abstract

Studies of neighbourhood effects typically investigate the instantaneous effect of point-in-time measures of neighbourhood poverty on individual outcomes. It has been suggested that it is not solely the current neighbourhood, but also the neighbourhood history of an individual that is important in determining an individual's outcomes. The effect of long-term exposure to poverty neighbourhoods on adults has largely been ignored in the empirical literature, partly due to a lack of suitable data. Using a population of parental home-leavers in Stockholm, Sweden, this study is innovative in investigating the effects of two temporal dimensions of exposure to neighbourhood environments on personal income later in life: the parental neighbourhood at the time of leaving the home and the cumulative exposure to poverty neighbourhoods in the subsequent 17 years. Using unique longitudinal Swedish register data and bespoke individual neighbourhoods, we are the first to employ a hybrid model, which combines both random and fixed effects approaches, in a study of neighbourhood effects. We find independent and non-trivial effects on income of the parental neighbourhood and cumulative exposure to poverty concentration neighbourhoods. The intergenerational transmission and exposure effects suggest the need for a more dynamic formulation of the neighbourhood effects hypothesis which explicitly takes temporal dimensions into account.

Keywords: neighbourhood effects, cumulative exposure, intergenerational transmission, poverty concentration, hybrid model, bespoke neighbourhoods

JEL Classification: I30, J60, R23

Suggested Citation

Hedman, Lina and Manley, David and van Ham, Maarten and Östh, John, Cumulative Exposure to Disadvantage and the Intergenerational Transmission of Neighbourhood Effects. IZA Discussion Paper No. 6794, Available at SSRN: https://ssrn.com/abstract=2157936

Lina Hedman (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

David Manley

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

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

John Östh

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
33
Abstract Views
432
PlumX Metrics