Kraks Fond Seminar

Presenter: Bence Boje-Kovacs

Co-author: George Poquillon

February 7th, 2019 at 11.00-12.00

Where: Kraks Fond, Frederiksholms Kanal 30, seminar room

 

Do your neighbours matter? Evidence from Building Demolitions in Denmark

This paper provides evidence of the effect one’s environment has on their socioeconomic outcomes.

We study the forced moves of households out of their dwellings
in the public housing sector in Denmark, preceding the closure of the building they
live in. Specifically, we combine the exogenous tenure of displaced individuals with
the characteristics of their neighbours to measure the short-term exposure to their
environment at the building level. We find that being exposed to employed neighbours
on the short-term significantly increases income and the likelihood of finding a job in
the three years following the rehousing of displaced households. On the opposite, the
short-term exposure to unemployed peers increases the chances to remain unemployed
after relocation. Long-term exposure has a more substantial effect than short-term
exposure, but is not longer-lasting.

 

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