Two recent studies find evidence of a powerful "neighborhood effect" for economic mobility—especially on the incomes of blue collar and service workers as compared to knowledge and creative workers.
Richard Florida shares news of two recent studies that explain the "neighborhood effect":
"The first [PDF], by Princeton University sociologist Douglas Massey and Jonathan Rothwell, an economist with the Brookings Institution’s Metropolitan Policy Program, examines how the neighborhood in which one lives for the first 16 years of life affects future income between the ages of 30 and 44."
"A second study [PDF] by my Martin Prosperity Institute colleagues Charlotta Mellander, Kevin Stolarick and José Lobo examines how neighborhood location affects the money people make. The study looks at the effects of residential neighborhoods and workplace neighborhoods on individuals’ incomes in Sweden between 2002 and 2011."
Florida details the findings and implications of each of the studies as well as summing up their importance thusly: "This work is essential to understanding why certain places grow while others do not, and how the powerful divides and segregations within our cities can and will echo into the future."
FULL STORY: How Your Neighborhood Affects Your Paycheck
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Economic & Planning Systems, Inc.
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research