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Neighborhood signaling effects, commuting time, and employment: evidence from a field experiment
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. (Linnaeus University Centre for Labour Market and Discrimination Studies)ORCID iD: 0000-0002-5620-4745
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. Stockholm University. (Linnaeus University Centre for Labour Market and Discrimination Studies)
2017 (English)Report (Other academic)
Abstract [en]

The question of whether and how living in a deprived neighborhood affects the labormarket outcomes of its residents has been a subject of great interest for both policy makers andresearchers. Despite this interest, empirical evidence of causal neighborhood effects on labormarket outcomes is scant, and causal evidence on the mechanisms involved is even more scant.The mechanism that this study investigates is neighborhood signaling effects. Specifically, weask whether there is unequal treatment in hiring depending on whether a job applicant signalsliving in a bad (deprived) neighborhood or in a good (affluent) neighborhood. To this end, weconducted a field experiment where fictitious job applications were sent to employers with anadvertised vacancy. Each job application was randomly assigned a residential address in either abad or a good neighborhood. The measured outcome is the fraction of invitations for a jobinterview (the callback rate). We find no evidence of general neighborhood signaling effects.However, job applicants with a foreign background have callback rates that are 42 percent lowerif they signal living in a bad neighborhood rather than in a good neighborhood. In addition, wefind that applicants with commuting times longer than 90 minutes have lower callback rates, andthis is unrelated to the neighborhood signaling effect. Apparently, employers view informationabout residential addresses as important for employment decisions.

Place, publisher, year, edition, pages
Linnéuniversitetet , 2017. , p. 33
Series
Working paper series: Linnaeus University Centre for Discrimination and Integration Studies ; 2017:3
Keywords [en]
Neighborhood signaling effects, Neighborhood stigma, Commuting time, Discrimination, Field experiment, Correspondence study
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-70084OAI: oai:DiVA.org:lnu-70084DiVA, id: diva2:1176913
Available from: 2018-01-23 Created: 2018-01-23 Last updated: 2018-04-12Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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