The effect of neighbourhood housing tenure mix on labour market outcomes: a longitudinal investigation of neighbourhood effects

Abstract

This article investigates the effect of different levels of neighbourhood housing tenure mix and deprivation on transitions from unemployment to employment and the probability of staying in employment for those with a job. We used multiple regression models and unique individual level data from the Scottish Longitudinal Study. We found that high correlations between the percentage of social renting in a neighbourhood and labour market outcomes disappeared when controlling for neighbourhood deprivation, individual level education and tenure. The results show that living in a deprived neighbourhood is negatively correlated with labour market performance, but predominantly for homeowners and not for social renters. We suggest that selection effects and not causation are behind the neighbourhood effects found.