Neighborhood Effects, Public Housing and Unemployment in France

Public
housing

Deprived
neighborhood

Unemploy-
ment

Intercept

Residential characteristics

0.412^NS

(0.344)

-0.908^***

(0.310)

-0.307^NS

(0.333)

Public housing

-

0.980^***

(0.258)

-0.168^NS

(0.249)

Deprived neighborhood

Personal characteristics

-

-

0.621^**

(0.279)

Age

-0.013^NS

(0.020)

0.005^NS

(0.014)

-0.072^***

(0.016)

Squared-age

Nationality

0.00005^NS

(0.0002)

-0.00007^NS

(0.0002)

0.0008^***

(0.0002)

French born in France

Ref.

Ref.

Ref.

French born abroad

0.310***

(0.051)

0.097^*

(0.051)

0.155^**

(0.067)

Foreign nationality

0.380***

(0.062)

0.199^***

(0.069)

0.354^***

(0.084)

Level of education

No diploma

0.118*

(0.064)

0.152^***

(0.058)

0.146^*

(0.090)

At most lower sec. edu.

0.100^NS

(0.064)

0.077^NS

(0.057)

0.160^*

(0.083)

Vocational training

0.041^NS

(0.055)

0.048^NS

(0.052)

0.020^NS

0.075)

High school final diploma

Ref.

Ref.

Ref.

University diploma

Ocucpational status

-0.097^*

(0.056)

-0.102^*

(0.054)

0.014^NS

(0.080)

Farmer or independent worker

-0.566^***

(0.074)

-0.162^***

(0.059)

-0.287^***

(0.087)

Executive

-0.441^***

(0.060)

-0.312^***

(0.046)

-0.138^**

(0.072)

Intermediate professions

Ref.

Ref.

Ref.

Office worker

0.291^***

(0.058)

0.084^NS

(0.057)

-0.084^NS

(0.080)

Blue-collar

0.430^***

(0.047)

0.169^***

(0.053)

0.061^NS

(0.070)

Characteristics of the spouse
Age

-0.054^***

(0.018)

-

-

-

Squared-age

Nationality

0.0004^**

(0.0002)

-

-

-

French born in France

Ref.

Ref.

Ref.

French born abroad

0.253^***

(0.061)

0.221^***

(0.056)

0.095^NS

(0.069)

Foreign nationality

0.221^***

(0.069)

0.177^***

(0.068)

0.132^NS

(0.088)

Level of education

No diploma

0.534^***

(0.064)

0.266^***

(0.067)

-

-

At most lower sec. edu.

0.367^***

(0.061)

0.125^**

(0.052)

-

-

Vocational training

0.284^***

(0.054)

0.161^***

(0.048)

-

-

High school final diploma

Ref.

Ref.

-

-

University diploma

-0.215^***

(0.059)

0.016^NS

(0.048)

-

-

Household characteristics
Number of children

None

Ref.

Ref.

-

-

One

0.079^NS

(0.048)

-0.010^NS

(0.036)

-

-

Two

0.127^**

(0.052)

-0,082^*

(0.044)

-

-

Three

0.255^***

(0.067)

-0,047^NS

(0.055)

-

-

Four or more

0.487^***

(0.09i)

0.010^NS

(0.087)

-

-

Correlation of residuals unemp./deprived neigh.

ρ12

-0.303^**

(0.154)

Correlation of residuals unemp./public housing ρ13

0.152^NS

(0.119)

Correlation of residuals deprived neigh./pub. housing ρ₂₃

-0.073^NS(0.144)

Log likelihood

-11,897

LR test (ρ12 = ρ23 = ρ23 = 0)

3.2112

Pseudo-R²

0.159

Number of observations

10,473

Notes: ***, ** and * denote significance at the 1%, 5% and 10% level respectively.

Estimation by simulated maximum likelihood with 600 draws.

Figures in brackets give robust standard

errors corrected for dependencies within neighborhood.