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Neighbourhood deprivation, life satisfaction and earnings: Comparative analyses of neighbourhood effects at bespoke scales

Published version
Peer-reviewed

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Authors

Melo, PC 
Zhang, M 

Abstract

jats:p Neighbourhood socioeconomic disadvantage has a profound impact on individuals’ earnings and life satisfaction. Since definitions of the neighbourhood and research designs vary greatly across studies, it is difficult to ascertain which neighbourhoods and outcomes matter the most. By conducting parallel analyses of the impact of neighbourhood deprivation on life satisfaction and earnings at multiple scales, we provide a direct empirical test of which scale matters the most and whether the effects vary between outcomes. Our identification strategy combines rich longitudinal information on individual characteristics, family background and initial job conditions for England and Wales with econometric estimators that address residential sorting bias, and we compare results for individuals living in choice-restricted social housing with results for those living in self-selected privately rented housing. We find that the effect of neighbourhood deprivation on life satisfaction and wages is negative for both outcomes and largely explained by strong residential sorting on both individual and neighbourhood characteristics rather than a genuine causal effect. We also find that the results overall do not vary by neighbourhood scale. </jats:p>

Description

Keywords

4406 Human Geography, 44 Human Society, Behavioral and Social Science, Basic Behavioral and Social Science, 2 Aetiology, 2.3 Psychological, social and economic factors, Generic health relevance

Journal Title

Urban Studies

Conference Name

Journal ISSN

0042-0980
1360-063X

Volume Title

58

Publisher

SAGE Publications
Sponsorship
Nuffield Foundation (DLW/42989)
Economic and Social Research Council (ES/K005146/1)