Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia
AbstractI 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.
CitationDeutscher, Nathan. 2020. "Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia." American Economic Journal: Applied Economics, 12 (2): 220-49. DOI: 10.1257/app.20180329
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J62 Job, Occupational, and Intergenerational Mobility; Promotion
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification