Scottish Longitudinal Study
Development & Support Unit
Estimation of Long Term Neighbourhood Effects of Religious Diversity using a Residential Sorting Model
Chuhang Yin (Duke University)
Gwilym Pryce (University of Sheffield)
Gavin (Guanpeng) Dong (University of Liverpool)
Stephan Heblich (University of Bristol)
Our study aims to estimate a residential sorting model using detailed information on individual characteristics and locations over time, and use model estimates to measure the impact of childhood neighbourhood diversity on preferences for neighbourhood diversity later in life. In this model, households “sort” across neighbourhoods according to their wealth and their preferences for local amenities. The aggregation of these individual choices in markets and in other institutions determine the supply of neighbourhood amenities, which is matched with the observed amenities in the data. This sorting model will allow us to recover the marginal willingness to pay (MWTP), i.e. the dollar amount an individual is willing to pay for an extra unit of consumption, for different aspects of neighbourhood amenities such as pollution, school quality and religious diversity. We can then investigate how the MWTP for religious diversity varies by childhood neighbourhood religious diversity. Quantifying the impact of childhood neighbourhood diversity on later-in-life neighbourhood choice will shed light on social barriers between groups and the evolution of urban segregation.
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