Working Paper: CEPR ID: DP10126
Authors: Giorgio Topa; Yves Zenou
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 Codes: C23; D85; J15; J64; K42; R14; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Neighborhood composition (R23) | Educational achievement (I24) |
| Neighborhood composition (R23) | Job finding ability (J68) |
| Neighborhood composition (R23) | Propensity to engage in crime (K42) |
| Structure of social networks (D85) | Economic behavior (D22) |
| Structure of social networks (D85) | Job prospects (J68) |
| Structure of social networks (D85) | Earnings (J31) |
| Peer influence (C92) | Economic outcomes (F69) |