Abstract
The purported effects of concentrations of immigrants and poverty within cities on inclusion in the labour market are intensively discussed among politicians and researchers. This study uses a multilevel approach to analyse a large longitudinal dataset in Stockholm. The results confirm previous research that concludes that only a small fraction of socioeconomic output can be considered to be a result of neighbourhood origin. Moreover, it is concluded that economic characteristics of neighbourhoods have a larger impact than ethnic ones. Growing up in a wealthy area adds to the risk of having a low income at 24 and 25 years of age, but growing up in a poor area adds to the risk of being unemployed.
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