Neighborhood effects, public housing and unemployment in FranceReport as inadecuate

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1 CORE - Center of Operation Research and Econometrics Louvain 2 GATE - Groupe d-analyse et de théorie économique

Abstract : This paper is aimed to examine how individual unemployment is influenced both by location in a deprived neighborhood and public housing. Our identification strategy is twofold. First, because we estimate a simultaneous probit model of public housing accommodation, type of neighborhood, and unemployment, the formal identification of the model relies on non-linearities. Second, we take advantage of the location of the public housing sector in France, which allows us to use public housing accommodation as a powerful determinant of neighborhood choices. 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.

en fr

Keywords : full information maximum likehood neighborhood effects public housing simultaneous probit models unemployment

Mots-clés : chômage effets de voisinage logement social maximum de vraisemblance à information complète modèle probit simultané

Author: Claire Dujardin - Florence Goffette-Nagot -



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