The Effect of Neighbourhood Housing Tenure Mix on Labour Market Outcomes: A Longitudinal Perspective

This paper investigates the effect of different levels of neighbourhood housing tenure mix on transitions from unemployment to employment and the probability of staying in employment for those with a job. We used individual level data from the Scottish Longitudinal Study (SLS), a 5.3% sample of the Scottish population, covering a 10 year period. We found a strong negative correlation between living in deprived neighbourhoods and labour market outcomes (getting or keeping a job). We found a small, but significant, positive correlation between living in mixed tenure (40-80% social housing) streets and transitions from unemployment to employment. In the conclusion we discuss the extent to which we think these results can be interpreted as 'neighbourhood effects' or selection effects.