Working Paper: NBER ID: w30764
Authors: Stephen B. Billings; Mark Hoekstra; Gabriel Pons Rotger
Abstract: Recent research documents a causal impact of place on the long-run outcomes of children. However, little is known about which neighborhood characteristics are most important, and at what scale neighborhood effects operate. By using the random assignment of public housing along with administrative data from Denmark, we get inside the “black box” of neighborhood effects by defining neighborhoods using various characteristics and scales. Results indicate effects on mental health and especially education are large but local, while effects on drug possession operate on a much broader scale. Additionally, unemployment and education are better predictors of outcomes than neighborhood income.
Keywords: neighborhood effects; children; social housing; Denmark; educational attainment; mental health; criminal involvement
JEL Codes: I38; K42; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Neighborhood Education Levels (I24) | Individual Outcomes (I24) |
| Neighborhood Unemployment (R23) | Individual Outcomes (I24) |
| Average Neighborhood Income (D31) | Individual Outcomes (I24) |
| Local Neighborhood Effects (R20) | Educational Attainment and Mental Health (I24) |
| Broader Neighborhood Characteristics (R20) | Drug Use (I12) |
| Neighborhood Quality (within a two-minute walking distance) (R20) | Likelihood of Attending Upper Secondary Education (I21) |
| Neighborhood Quality (within a two-minute walking distance) (R20) | Adult Drug Possession (K42) |
| Neighborhood Quality (within a two-minute walking distance) (R20) | Mental Health Visits (I19) |
| Acceptance of Housing Offer (R21) | Educational Attainment (I21) |
| Acceptance of Housing Offer (R21) | Drug Possession (K42) |
| Acceptance of Housing Offer (R21) | Mental Health Visits (I19) |