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Neighborhood impacts on human capital accumulation of adolescents and young adults in Montevideo

Santiago Acerenza, Nestor Gandelman and Daniel Misail

Regional Science and Urban Economics, 2025, vol. 111, issue C

Abstract: This paper explores the causal impacts of the neighborhood of residence on education outcomes for adolescents and young adults (15–24 years old) in Montevideo. We analyze educational trends from 1992 to 2019, revealing persistence and pronounced geographical segmentation between the affluent southeast and the more disadvantaged outskirts of the city. We model the neighborhood effects through the neighborhood average education level. We estimate their causal impact using a control function for addressing selection on unobservables. We find statistically significant results of a relatively large magnitude. We address heterogeneity of the effects and find that neighborhood effects are stronger for boys than girls, that family income buffers neighborhood effects, and that household education level and neighborhood education level are complements.

Keywords: Neighborhoods; School enrollment; Human capital; Young people (search for similar items in EconPapers)
JEL-codes: I24 I25 R23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:111:y:2025:i:c:s016604622500002x

DOI: 10.1016/j.regsciurbeco.2025.104085

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