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Place, Peers, and the Teenage Years: Long-Run Neighborhood Effects in Australia

Nathan Deutscher

American Economic Journal: Applied Economics, 2020, vol. 12, issue 2, 220-49

Abstract: I use variation in the age at which children move to show that where an Australian child grows up has a causal effect on their adult income, education, marriage, and fertility. In doing so, I replicate the findings of Chetty and Hendren (2018a) in a country with less inequality, more social mobility, and different institutions. Across all outcomes, place typically matters most during the teenage years. Finally, I provide suggestive evidence of peer effects using cross-cohort variation in the peers of permanent postcode residents: those born into a richer cohort for their postcode tend to end up with higher incomes themselves.

JEL-codes: D63 J13 J62 R23 Z13 (search for similar items in EconPapers)
Date: 2020
Note: DOI: 10.1257/app.20180329
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