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NEIGHBORHOOD SOCIAL MIX AND ADULTS' INCOME TRAJECTORIES: LONGITUDINAL EVIDENCE FROM STOCKHOLM
Authors:George Galster  Roger Andersson  Sako Musterd
Institution:1. Hilberry Professor Department of Urban Studies and Planning, Wayne State University, Detroit, USA;2. Professor Institute for Housing and Urban Research (IBF), Uppsala University, Uppsala, Sweden;3. Professor Department of Geography, Planning and International Development Studies, University of Amsterdam, The Netherlands
Abstract:We investigate the relationship between neighborhood income composition and income trajectories of adults, employing annual panel data from Stockholm over the 1991–2008 period and multiple measures of neighborhood income mix. We advance the human geography literature in three ways by quantifying neighborhood effects that: (1) are unusually precise due to our large sample size; (2) are arguably causal and unbiased due to the econometric techniques employed; (3) are potentially heterogeneous, varying according to gender, income group, and ethnicity. Our innovative, fixed‐effect change modeling indicates that neighborhood income mix affects subsequent one‐ and five‐year income trajectories of residents in highly heterogeneous ways according to gender, income and ethnicity, and for some groups this effect is substantial. The evidence supports on Pareto improvement grounds a social mix policy that attempts to reduce the incidence of lower‐income dominant neighborhood environments and replace them with more mixed or middle‐income dominant ones.
Keywords:neighborhood effects  social mixing  fixed effects models  neighborhood income mix  Pareto improvement  Stockholm
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