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Journal of Economic Geography Advance Access originally published online on September 18, 2006
Journal of Economic Geography 2007 7(1):1-38; doi:10.1093/jeg/lbl013
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© The Author (2006). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Neighbourhoods, households and income dynamics: a semi-parametric investigation of neighbourhood effects

Anne Bolster*, Simon Burgess**,{dagger}, Ron Johnston***, Kelvyn Jones***, Carol Propper** and Rebecca Sarker*

* University of Bristol, CMPO, UK.
** Department of Economics, University of Bristol, CMPO and CEPR, UK.
*** School of Geographical Sciences, University of Bristol, UK.

{dagger} Corresponding author: Simon Burgess, Department of Economics, University of Bristol, CMPO and CEPR, UK. email < simon.burgess{at}bristol.ac.uk>

Using a unique data set, we present evidence on income trajectories of people living in micro-neighbourhoods. We investigate neighbourhood influences making as few parametric assumptions as possible. The article offers a number of advances. We exploit a data set that is large, representative, longitudinal, with very local neighbourhoods. We analyse income growth over 1-, 5- and 10-year windows. We analyse the whole distribution of income growth and track large gainers and losers as well as averages. We consider the appropriate definition of neighbourhood. We find no evidence of a negative relationship between neighbourhood disadvantage and subsequent income growth; indeed, some evidence of a positive relationship.

Keywords: neighbourhood effects, income dynamics, small-scale neighbourhoods,
JEL classifications: I30, D31
Date submitted: 1 November 2005     Date accepted: 1 August 2006


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