Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45704 
Authors: 
Year of Publication: 
2009
Series/Report no.: 
Working Paper No. 2009:11
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
Abstract: 
There are large differences in income and education levels, unemployment and ethnic composition between neighbourhoods. An interesting question is whether a neighbourhood's characteristics affect the behaviour of its residents. This paper investigates neighbourhood effects on youths-post primary education choice. Besides including usual variables the paper also includes neighbourhood specific economic incentives. Estimating linear probability models as well as multinomial logit models using Swedish register data, covering the county of Stockholm and the years 1988-1992, I find that both neighbourhood characteristics and economic incentives affect the choice. For the latter the results are quite clear although the size of the effect is small: an increase in the expected income of an alternative increases the probability that this alternative is chosen. For the neighbourhood variables the results differ to some extent depending on the model. The proportion of individuals with at most compulsory education in a neighbourhood does however seem to have a negative effect on applying for a university preparatory programme. The proportion of immigrants in a neighbourhood tend to have a positive effect on immigrants' probability to apply for a university preparatory programme.
Subjects: 
Neighbourhoods
economic incentives
educational choice
JEL: 
I20
I22
R19
Document Type: 
Working Paper

Files in This Item:
File
Size
887.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.