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Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data

Bruce A. Weinberg1; Patricia B. Reagan1; Jeffrey J. Yankow2

1 The Ohio State University · 2 Furman University

Journal of Labor Economics 2004

Using a confidential version of the NLSY79, we estimate large effects of neighborhood social characteristics and job proximity on labor market activity. A variety of neighborhood social characteristics are associated with less market work. Social characteristics have nonlinear effects, with the greatest impact in the worst neighborhoods. Social characteristics are also more important for less‐educated workers. Exploiting the panel aspects of our data, we find that estimates that do not account for neighborhood selection on the basis of time‐invariant and time‐varying unobserved individual characteristics substantially overstate the social effects of neighborhoods but understate the effects of job access.

DOI
10.1086/423158
Volume
22 (4)
Pages
891-924
Language
en
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