Working Paper: CEPR ID: DP4611
Authors: Anne Bolster; Simon Burgess; Ron Johnston; Kelvyn Jones; Carol Propper; Rebecca Sarker
Abstract: Using a unique dataset, we present evidence on income trajectories of people living in micro neighbourhoods. We place bounds on the influence of neighbourhood 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 neighbourhoods. We analyse income growth over one, five- and ten-year windows. We analyse the whole distribution of income growth and track large gainers and losers as well as average outcomes. We consider the appropriate definition of neighbourhood. We find little evidence of a negative relationship between neighbourhood and subsequent income growth.
Keywords: income dynamics; neighbourhood effects; small-scale neighbourhoods
JEL Codes: D31; I30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| neighbourhood disadvantage (R23) | subsequent income growth (O49) |
| poorer neighbourhoods (R23) | income growth (O49) |
| prior income levels (D31) | neighbourhood influences on income change (R23) |
| housing finance system (G21) | neighbourhood effects (R23) |
| income dynamics (D31) | income outcomes (E25) |