Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Neighborhoods Matter: Assessing the Evidence for Place Effects
Journal of Economic Perspectives
vol. 35,
no. 4, Fall 2021
(pp. 197–222)
(Complimentary)
Abstract
How does one's place of residence affect individual behavior and long-run outcomes? Understanding neighborhood and place effects has been a leading question for social scientists during the past half-century. Recent empirical studies using experimental and quasi-experimental research designs have generated new insights on the importance of residential neighborhoods in childhood and adulthood. This paper summarizes the recent neighborhood effects literature and interprets the findings. Childhood neighborhoods affect long-run economic and educational outcomes in a manner consistent with exposure models of neighborhood effects. For adults, neighborhood environments matter for their health and well-being but have more ambiguous impacts on labor market outcomes. We discuss the evidence on the mechanisms behind the observed patterns and conclude by highlighting directions for future research.Citation
Chyn, Eric, and Lawrence F. Katz. 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects." Journal of Economic Perspectives 35 (4): 197–222. DOI: 10.1257/jep.35.4.197Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I12 Health Behavior
- I21 Analysis of Education
- I32 Measurement and Analysis of Poverty
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- R38 Production Analysis and Firm Location: Government Policy