The University of Southampton
University of Southampton Institutional Repository

The role of location choice as an intergenerational transmission mechanism and in determining unemployment duration

The role of location choice as an intergenerational transmission mechanism and in determining unemployment duration
The role of location choice as an intergenerational transmission mechanism and in determining unemployment duration

This thesis analyses how the location decision impacts upon intergenerational mobility and unemployment duration.  Chapter 1 analyses theoretically within the standard urban framework how location and investment decisions are made when human capital externalities from location exist, as well as how these two factors interact to determine the level of human capital accumulation of the second generation.  We consider two distinct forms for the externality effect, and find that in the urban framework with location in continuous space, a sufficiently rich specification for the locational externality is sufficient to provide a viable alternative framework to others used within the literature, even with one-dimensional parental heterogeneity.  We also present an initial descriptive look at the extent of intergenerational mobility within the UK.  The results suggest the advantages that accrue to sons whose parents chose to locate in an affluent neighbourhood is marked.

Chapter 2 provides a more rigorous empirical approach, by merging information on parent and child from NCDS data with socioeconomic neighbourhood information from the 1971 Census.  Three different levels of data disaggregation are used to construct the neighbourhood characteristics, and two distinct methods for recovering unobservable permanent wage.  We find from a variety of regressions that neighbourhood is an important mechanism in understanding intergenerational mobility.  We also find that it is unlikely these results are due to omitted variables concerning family background.  Furthermore, the magnitude of these coefficients was found to depend upon the level of data disaggregation at which the neighbourhood characteristics were constructed.

Chapter 3 analyses how the neighbourhood in which one resides affects the transition rate from receipt of unemployment benefit into work.  We also attempt to ascertain which occupational groups may be more susceptible to any effect from location.  We use the standard hazard rate framework, and estimate a variety of proportional hazard models.  Simulations are also carried out to interpret the results in more depth.  We find that location is important in determining unemployment duration, and that unskilled manual workers are most responsive to changes in locational characteristics.

University of Southampton
Palmer, Simon
00d6af14-573b-4419-b593-e1011de2d4fe
Palmer, Simon
00d6af14-573b-4419-b593-e1011de2d4fe

Palmer, Simon (2004) The role of location choice as an intergenerational transmission mechanism and in determining unemployment duration. University of Southampton, Doctoral Thesis.

Record type: Thesis (Doctoral)

Abstract

This thesis analyses how the location decision impacts upon intergenerational mobility and unemployment duration.  Chapter 1 analyses theoretically within the standard urban framework how location and investment decisions are made when human capital externalities from location exist, as well as how these two factors interact to determine the level of human capital accumulation of the second generation.  We consider two distinct forms for the externality effect, and find that in the urban framework with location in continuous space, a sufficiently rich specification for the locational externality is sufficient to provide a viable alternative framework to others used within the literature, even with one-dimensional parental heterogeneity.  We also present an initial descriptive look at the extent of intergenerational mobility within the UK.  The results suggest the advantages that accrue to sons whose parents chose to locate in an affluent neighbourhood is marked.

Chapter 2 provides a more rigorous empirical approach, by merging information on parent and child from NCDS data with socioeconomic neighbourhood information from the 1971 Census.  Three different levels of data disaggregation are used to construct the neighbourhood characteristics, and two distinct methods for recovering unobservable permanent wage.  We find from a variety of regressions that neighbourhood is an important mechanism in understanding intergenerational mobility.  We also find that it is unlikely these results are due to omitted variables concerning family background.  Furthermore, the magnitude of these coefficients was found to depend upon the level of data disaggregation at which the neighbourhood characteristics were constructed.

Chapter 3 analyses how the neighbourhood in which one resides affects the transition rate from receipt of unemployment benefit into work.  We also attempt to ascertain which occupational groups may be more susceptible to any effect from location.  We use the standard hazard rate framework, and estimate a variety of proportional hazard models.  Simulations are also carried out to interpret the results in more depth.  We find that location is important in determining unemployment duration, and that unskilled manual workers are most responsive to changes in locational characteristics.

Text
971405.pdf - Version of Record
Available under License University of Southampton Thesis Licence.
Download (5MB)

More information

Published date: 2004

Identifiers

Local EPrints ID: 465554
URI: http://eprints.soton.ac.uk/id/eprint/465554
PURE UUID: 3a59a441-b98d-49c7-adc9-2a11d4b593ed

Catalogue record

Date deposited: 05 Jul 2022 01:44
Last modified: 16 Mar 2024 20:15

Export record

Contributors

Author: Simon Palmer

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×