Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia
- American Economic Journal: Applied Economics (Forthcoming)
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 in 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.
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