The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes

53 Pages Posted: 20 Aug 2018

See all articles by Simen Markussen

Simen Markussen

University of Oslo - Ragnar Frisch Centre for Economic Research

Knut Roed

Ragnar Frisch Centre for Economic Research; IZA Institute of Labor Economics

Abstract

Based on Norwegian administrative registers we provide new empirical evidence on the effects of the childhood neighborhood's socioeconomic status on educational and labor market performance. A neighborhood's status is measured annually by its prime age inhabitants' earnings ranks within larger commuting zones, and the childhood neighborhood status is the average status of the neighborhoods inhabited from birth to age 15. Identification of causal effects relies on within-family comparisons. Our results reveal a hump-shaped relationship between the socioeconomic status of the childhood neighborhood and school results at age 15-16, such that the optimal neighborhood is of medium rank. The top-ranked neighborhoods are as bad as the bottom-ranked. Similar results are obtained for educational and labor market outcomes measured at higher ages.

Keywords: segregation, neighborhood effects, social mobility, educational outcomes

JEL Classification: C21, I24, R23, Z13

Suggested Citation

Markussen, Simen and Røed, Knut, The Golden Middle Class Neighborhood: Trends in Residential Segregation and Consequences for Offspring Outcomes. IZA Discussion Paper No. 11684, Available at SSRN: https://ssrn.com/abstract=3234207

Simen Markussen (Contact Author)

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Knut Røed

Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0349 Oslo
Norway

IZA Institute of Labor Economics

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

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