Neighborhood effects, public housing and unemployment in France

Neighborhood effects, public housing and unemployment in France

[SHS:ECO] Humanities and Social Sciences/Economy and finances

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neighborhood effects

public housing

simultaneous probit models

unemployment

This paper is aimed to examine how individual unemployment is influenced both by location in a deprived neighborhood and public housing. Our identification strategy is twofold. First, because we estimate a simultaneous probit model of public housing accommodation, type of neighborhood, and unemployment, the formal identification of the model relies on non-linearities. Second, we take advantage of the location of the public housing sector in France, which allows us to use public housing accommodation as a powerful determinant of neighborhood choices. Our results show that public housing does not have any direct effect on unemployment. However, living within the 35% more deprived neighborhoods does increase the unemployment probability significantly. As expected, the effect of neighborhood substantially decreases when dealing with the endogeneity of neighborhood and when using public housing as a determinant of neighborhood choice.

Dujardin, Claire

Goffette-Nagot, Florence

2005

ENG

other publication

http://halshs.archives-ouvertes.fr/halshs-00180046

http://halshs.archives-ouvertes.fr/docs/00/18/00/46/PDF/0505.pdf