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date: 19 January 2020

Abstract and Keywords

This article begins by discussing the various empirical strategies that have been used to identify a causal relationship between peers, neighborhoods, or social contacts and an individual's behaviors or outcomes. It reveals neighborhood effects on individual outcomes, and describes the empirical literature on neighborhood effects starting with the literature on the impact of racial segregation on African Americans, followed by considerations of the effect of neighborhoods on labor market outcomes, and finally the effects on families and children. Furthermore, it deals with the literature on peer effects, focusing primarily on education, including evidence on mechanisms and the role of friendship networks, but also considers other settings, especially the workplace. It emphasizes the quantitative studies of neighborhood and peer effects. Finally, it examines the implications for planning.

Keywords: empirical strategies, neighborhood effects, individual outcomes, planning, peer effects

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