Good Neighborhoods, Good Neighbors, Good Jobs?

Stephen B. Billings, Mark Hoekstra and Gabriel Pons Rotger

No 34872, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: While a growing literature has documented the effect of neighborhoods on children, there is little evidence on how neighborhoods impact adults. This study examines the impact of neighborhoods on high-needs families in Denmark who are quasi-randomly assigned to social housing in different neighborhoods. Results indicate a one standard deviation improvement in nearby neighborhood quality causes a 0.08 standard deviation improvement in labor market outcomes, and a 2.8 percent reduction in the likelihood of criminal conviction. Additional results indicate the labor market effects are most consistent with additional job referrals from nearby neighbors, rather than differences in local job availability.

JEL-codes: I38 K42 R23 (search for similar items in EconPapers)
Date: 2026-02
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