The idea of neighbourhood effects implies that the demographic context of poor neighbourhoods instills 'dysfunctional' norms, values and behaviours into youths, triggering a cycle of social pathology. It is argued that neighbourhood effects are part of a wider discourse of inner-city marginality that stereotypes inner-city neighbourhoods. Reflecting upon arguments made in the existing literature, the ideological underpinnings of the idea of neighbourhood effects are revealed. Essentialist conceptions of neighbourhood culture among employers, educators and institutional staff contribute to the neighbourhood effects phenomenon. It is also suggested that researchers and policy-makers must recognise wider forces of cultural differentiation and exclusion.
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