Neighborhood effects, public housing and unemployment in France

Claire Dujardin and Florence Goffette-Nagot ()
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Florence Goffette-Nagot: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique

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Abstract: How individual unemployment is influenced both by location in a deprived neighborhood and public housing. Our identification strategy is twofold. First, we estimate a simultaneous probit model of public housing accommodation, type of neighborhood, and unemployment, thus accounting explicitely for correlation of unobservables between the three behaviors. Second, we take advantage of the situation of the public housing sector in France, which allows us to use public housing accommodation as a powerfuldeterminant of neighborhood choices and to use household's demographic characteristics as exclusion restrictions. Our results show that public housing does not have any direct effect on unemployment. However, living within the 35% more deprived neighborhoods does increase the unemployment probability significantly. As expected, the effect of neighborhood substantially decreases when dealing with the endogeneity of neighborhood and when using public housing as a determinant of neighborhood choice.

Keywords: Neighborhood effects; public housing; unemployment; simultaneous probit models; simulated maximum likelihood.; simulated maximum likelihood (search for similar items in EconPapers)
Date: 2006-03
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Published in Faculté de Géographie, Université de Louvain-la-Neuve, Mar 2006, Louvain-la-Neuve, Belgium

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Related works:
Working Paper: Neighborhood effects, public housing and unemployment in France (2006)
Working Paper: Neighborhood effects, public housing and unemployment in France (2006)
Working Paper: Neighborhood effects, public housing and unemployment in France (2006)
Working Paper: Neighborhood effects, public housing and unemployment in France (2006)
Working Paper: Neighborhood effects, public housing and unemployment in France (2005)
Working Paper: Neighborhood effects, public housing and unemployment in France (2005)
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