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Abstract for:

Neighbourhood Effects in Small Neighbourhoods

Henry  Overman,  November 2000
Paper No' CEPDP0481: | Full paper (pdf)
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Keywords: Education; decisions; neighbourhood effects; housing policy

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Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
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This paper uses data on a sample of Australian teenagers to test for neighbourhood effects on school dropout rates. The data allows us to test for neighbourhood effects at two different spatial scales. We find that educational composition of the larger neighbourhood can influence the dropout rate. We argue that this is most likely to reflect the structure of local labour market demand. We also find that low socio-economic status of the immediate neighbourhood has an adverse impact on dropout rate. This suggests that government policy may need to consider the socio-economic composition of quite small geographical areas if it considers interfering in the market to create greater income mixing within neighbourhoods.