Place, Jobs, Peers and the Teenage Years: Exposure Effects and Intergenerational Mobility

75 Pages Posted: 19 Jun 2018

See all articles by Nathan Deutscher

Nathan Deutscher

Australian National University (ANU) - Crawford School of Public Policy

Date Written: June 1, 2018

Abstract

I show that where a child grows up has a causal effect on their adult income, but that place matters most in the teenage years. I use variation in the age at which Australian children move to identify this pattern of place exposure effects. I explore two potential explanations. First, this pattern is partly explained by the fact that spending more years in a place in adolescence lifts the probability of entering the associated local labor market and earning any corresponding wage premium. Second, I identify long-lasting peer effects using cross-cohort variation in peer parental income among permanent postcode residents.

Keywords: Intergenerational mobility, neighborhood effects, local labor markets, peer effects

Suggested Citation

Deutscher, Nathan, Place, Jobs, Peers and the Teenage Years: Exposure Effects and Intergenerational Mobility (June 1, 2018). Tax and Transfer Policy Institute - Working Paper 10/2018, Available at SSRN: https://ssrn.com/abstract=3189914 or http://dx.doi.org/10.2139/ssrn.3189914

Nathan Deutscher (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

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