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Neighbourhood Poverty and Individual Earnings: Tales of Two (Norwegian) Cities
Author(s) -
Nordvik Viggo,
Turner Lena Magnusson,
Friedrichs Jürgen
Publication year - 2020
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/tesg.12370
Subject(s) - neighbourhood (mathematics) , earnings , norwegian , poverty , demographic economics , geography , economic geography , panel data , economics , econometrics , economic growth , mathematics , mathematical analysis , linguistics , philosophy , accounting
Abstract Across cities, one observes similarities in poverty and earnings of individuals within the same neighbourhood. Are these similarities due to causal influences neighbours exercise upon each other or to spatial sorting? We analyse this within the frame of a fixed effects model, estimated on a register‐based panel covering all residents of two urban areas in Norway over the years from 1997 to 2011. We find a significant depressing effect of the share of low‐earners in the neighbourhood on individual earnings in the capital region ‐ Oslo. Our estimates of the impact of neighbourhood poverty are small in magnitude compared to what is found in other studies. In the other, less central area studied, we do not find any such effect. It is tempting to speculate that sorting and neighbourhood effects are less intense in urban regions with a smaller menu of neighbourhood choices. [Correction added on 30 July 2019, after first publication: The Abstract has been modified for improvement in this version.]