Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia | Zendy

Nathan Deutscher | Zendy

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Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia

Author(s) -

Nathan Deutscher

Publication year - 2020

Publication title -

american economic journal applied economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 12.996

H-Index - 82

eISSN - 1945-7782

pISSN - 1945-7790

DOI - 10.1257/app.20180329

Subject(s) - variation (astronomy) , cohort , peer effects , demographic economics , fertility , inequality , social mobility , cohort effect , demography , replicate , economics , psychology , sociology , population , medicine , social psychology , social science , mathematical analysis , physics , mathematics , statistics , astrophysics

I use variation in the age at which children move to show that where an Australian child grows up has a causal effect on their adult income, education, marriage, and fertility. In doing so, I replicate the findings of Chetty and Hendren (2018a) in a country with less inequality, more social mobility, and different institutions. Across all outcomes, place typically matters most during the teenage years. Finally, I provide suggestive evidence of peer effects using cross-cohort variation in the peers of permanent postcode residents: those born into a richer cohort for their postcode tend to end up with higher incomes themselves. (JEL D63, J13, J62, R23, Z13)

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