Neighborhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighborhood Effects

56 Pages Posted: 28 Oct 2004

See all articles by Anne Bolster

Anne Bolster

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Simon M. Burgess

University of Bristol - Department of Economics; University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Ron Johnston

University of Bristol - School of Geographical Sciences

Kelvyn Jones

University of Bristol - School of Geographical Sciences

Carol Propper

Imperial College London Business School; Centre for Economic Policy Research (CEPR); University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Rebecca Sarker

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Date Written: September 2004

Abstract

Using a unique dataset, we present evidence on income trajectories of people living in micro neighborhoods. We place bounds on the influence of neighborhood making as few parametric assumptions as possible. The Paper offers a number of advances. We exploit a dataset that is large, representative, longitudinal with very local neighborhoods. We analyze income growth over one, five and ten-year windows. We analyze the whole distribution of income growth and track large gainers and losers as well as average outcomes. We consider the appropriate definition of neighborhood. We find little evidence of a negative relationship between neighborhood and subsequent income growth.

Keywords: Neighborhood effects, income dynamics, small scale neighborhoods

JEL Classification: D31, I30

Suggested Citation

Bolster, Anne and Burgess, Simon and Johnston, Ron and Jones, Kelvyn and Propper, Carol and Sarker, Rebecca, Neighborhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighborhood Effects (September 2004). CEPR Discussion Paper No. 4611. Available at SSRN: https://ssrn.com/abstract=611565

Anne Bolster

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

Simon Burgess (Contact Author)

University of Bristol - Department of Economics ( email )

8 Woodland Road
Bristol BS8 ITN
United Kingdom
+44 117 928 8436 (Phone)
+44 117 928 8577 (Fax)

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/burgess.htm

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

12 Priory Road
Bristol BS8 1TN
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

Ron Johnston

University of Bristol - School of Geographical Sciences ( email )

University Road
Bristol BS8 1SS
United Kingdom

Kelvyn Jones

University of Bristol - School of Geographical Sciences ( email )

University Road
Bristol BS8 1SS
United Kingdom

Carol Propper

Imperial College London Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/propper.htm

Rebecca Sarker

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

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