Neighborhood and Network Effects

79 Pages Posted: 25 Sep 2014

See all articles by Giorgio Topa

Giorgio Topa

Federal Reserve Bank of New York

Yves Zenou

Monash University - Department of Economics; Stockholm University; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: September 2014

Abstract

In this chapter, we provide an overview of research on neighborhoods and social networks and their role in shaping behavior and economic outcomes. We include discussion of empirical and theoretical analyses of the role of neighborhoods and social networks in crime, education and labor-market outcomes. In particular, we discuss in detail identification problems in peer, neighborhood and network effects and the policy implications of integrating the social and the geographical space, especially for ethnic minorities.

Keywords: ethnic minorities, group-based policies, labor economics, neighborhoods, social networks

JEL Classification: C23, D85, J15, J64, K42, R14, Z13

Suggested Citation

Topa, Giorgio and Zenou, Yves, Neighborhood and Network Effects (September 2014). CEPR Discussion Paper No. DP10126. Available at SSRN: https://ssrn.com/abstract=2501609

Giorgio Topa (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Yves Zenou

Monash University - Department of Economics ( email )

Australia

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Research Institute of Industrial Economics (IUI) ( email )

P.O. Box 5501
S-114 85 Stockholm
Sweden

IZA Institute of Labor Economics

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

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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