Addressing identification issues in neighbourhood effects research on subjective and objective well-being
|Day:||Thu 4 Jul|
How does place shape people’s social and economic outcomes and does place matter for people’s subjective wellbeing? Living in deprived areas can hinder individuals’ future prospects, but is local disadvantage the underlying cause of poverty or the spatial manifestation of income determining where people live? A plethora of empirical studies have examined neighbourhood effects on various outcomes of social exclusion, but there have been few attempts to address the various identification challenges facing the research. In this paper we will present new evidence on neighbourhood effects on individual objective wellbeing (employment, earnings) and subjective wellbeing (life satisfaction, self-rated health) for different neighbourhood boundaries and spatial scales and using a range of alternative econometric techniques to better address identification issues impeding the estimation of causal relationships.