Modelling neighbourhood effects in three Dutch cities controlling for selection

The research leading to these results has received funding from the European Research Council under the European Union's Seventh Framework Programme (FP/2007–2013)/ERC Grant Agreement n. 615159 (ERC Consolidator Grant DEPRIVEDHOODS, Socio-spatial inequality, deprived neighbourhoods, and neighbourhood effects), as well as from European Union's Horizon 2020 research and innovation programme under Grant Agreement n. 727097 (RELOCAL).The non-random selection of people into neighbourhoods complicates the estimation of causal neighbourhood effects on individual outcomes. Measured neighbourhood effects could be the result of characteristics of the neighbourhood context, but they could also result from people selecting into neighbourhoods based on their preferences, income, and the availability of alternative housing. This paper examines how the neighbourhood effect on individual income is altered when geographic selection correction terms are added as controls, and how these results vary across three Dutch urban regions. We use a two-step approach in which we first model neighbourhood selection, and then include neighbourhood choice correction components in a model estimating neighbourhood effects on individual income. Using longitudinal register datasets for three major Dutch cities: Amsterdam, Utrecht and Rotterdam, and multilevel models, we analysed the effects for individuals who moved during a 5-year period. We show that in all cities, the effect of average neighbourhood income on individual income becomes much smaller after controlling for explicitly modelled neighbourhood selection. This suggests that studies that do not control for neighbourhood selection most likely overestimate the size of neighbourhood effects. For all models, the effects of neighbourhood income are strongest in Rotterdam, followed by Amsterdam and Utrecht.Publisher PDFPeer reviewe

Neighbourhood effects on educational attainment. What matters more: Exposure to poverty or exposure to affluence?

Neighbourhood effects studies typically investigate the negative effects on individual outcomes of living in areas with concentrated poverty. The literature rarely pays attention to the potential beneficial effects of living in areas with concentrated affluence. This poverty paradigm might hinder our understanding of spatial context effects. Our paper uses individual geocoded data from the Netherlands to compare the effects of exposure to neighbourhood affluence and poverty on educational attainment within the same statistical models. Using bespoke neighbourhoods, we create individual neighbourhood histories which allow us to distinguish exposure effects from early childhood and adolescence. We follow an entire cohort born in 1995 and we measure their educational level in 2018. The results show that, in the Netherlands, neighbourhood affluence has a stronger effect on educational attainment than neighbourhood poverty for all the time periods studied. Additionally, interactions with parental education indicate that children with higher educated parents are not affected by neighbourhood poverty. These results highlight the need for more studies on the effects of concentrated affluence and can inspire anti-segregation policies