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Understanding Neighbourhood Effects: Selection Bias and Residential Mobility

Author

Listed:
  • Bergström, Lina

    (Uppsala University)

  • van Ham, Maarten

    (Delft University of Technology)

Abstract
The number of studies investigating neighbourhood effects has increased rapidly over the last two decades. Although many of these studies claim to have found evidence for neighbourhood effects, most 'evidence' is likely the result of reversed causality. The main challenge in modelling neighbourhood effects is the (econometric) identification of causal effects. The most severe problem is selection bias as a result of selective sorting into neighbourhoods. This paper argues that in order to further our understanding of neighbourhood effects we should explicitly incorporate neighbourhood sorting into our models. Neighbourhood effect studies are in the situation where the processes behind one of its key methodological problems (selection bias) are also critical to fully understand the neighbourhood context itself. It is thus remarkable that residential mobility and neighbourhood sorting has been almost completely ignored in the neighbourhood effects literature.

Suggested Citation

  • Bergström, Lina & van Ham, Maarten, 2010. "Understanding Neighbourhood Effects: Selection Bias and Residential Mobility," IZA Discussion Papers 5193, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5193
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    File URL: https://docs.iza.org/dp5193.pdf
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    References listed on IDEAS

    as
    1. Lina Hedman & Maarten van Ham & David Manley, 2011. "Neighbourhood Choice and Neighbourhood Reproduction," Environment and Planning A, , vol. 43(6), pages 1381-1399, June.
    2. Maarten van Ham & David Manley, 2010. "The effect of neighbourhood housing tenure mix on labour market outcomes: a longitudinal investigation of neighbourhood effects," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 257-282, March.
    3. Maarten van Ham & Peteke Feijten, 2008. "Who Wants to Leave the Neighbourhood? The Effect of Being Different from the Neighbourhood Population on Wishes to Move," Environment and Planning A, , vol. 40(5), pages 1151-1170, May.
    4. Maarten van Ham & William A V Clark, 2009. "Neighbourhood Mobility in Context: Household Moves and Changing Neighbourhoods in the Netherlands," Environment and Planning A, , vol. 41(6), pages 1442-1459, June.
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    Citations

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    Cited by:

    1. Kirsten M. M. Beyer & Andrea Kaltenbach & Aniko Szabo & Sandra Bogar & F. Javier Nieto & Kristen M. Malecki, 2014. "Exposure to Neighborhood Green Space and Mental Health: Evidence from the Survey of the Health of Wisconsin," IJERPH, MDPI, vol. 11(3), pages 1-20, March.
    2. Stanley, John K. & Hensher, David A. & Stanley, Janet R., 2022. "Place-based disadvantage, social exclusion and the value of mobility," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 101-113.
    3. Boje-Kovacs, Bence & Egsgaard-Pedersen, Aske & Weatherall, Cecilie D., 2021. "Residential mobility and persistent neighborhood deprivation," Journal of Housing Economics, Elsevier, vol. 53(C).
    4. Virág Ilyés & István Boza & László Lőrincz & Rikard H Eriksson, 2023. "How to enter high-opportunity places? The role of social contacts for residential mobility," Journal of Economic Geography, Oxford University Press, vol. 23(2), pages 371-395.
    5. Thomas Schofield & Melissa Merrick & Chia-Feng Chen, 2016. "Reciprocal Associations between Neighborhood Context and Parent Investments: Selection Effects in Two Longitudinal Samples," Working Papers wp16-08-ff, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..

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    More about this item

    Keywords

    residential mobility; selective mobility; selection bias; neighbourhood effects; migration; neighbourhoods;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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