How does the “social” and “cultural” neighbourhood composition impact on the economic prospects of its inhabitants?’ We addressed this question, while using a new longitudinal dataset. We analysed the individual income changes between 1999 and 2005 of all Dutch 18–49 year-olds (subdivided in four strata) who stayed in the same neighbourhood throughout the period while focusing on the role of neighbourhood after controlling for a range of individual variables. The impact of neighbourhood contexts is statistically significant, yet limited compared to the impact of individual characteristics. Social context – neighbourhood median income and income mix – turned out to be most relevant in terms of neighbourhood impact. Higher median incomes and more income mix in the neighbourhood have significant positive effects on individual income development.

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Keywords Social mix, ethnic mix, neighbourhood effect, longitudinal, the Netherlands
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Journal Tijdschrift voor Economische en Sociale Geografie
Musterd, S., de Vos, S, Das, M, & Latten, J.J. (2012). Neighbourhood composition and economic prospects: a longitudinal study in the Netherlands. Tijdschrift voor Economische en Sociale Geografie, 103, 85–100. doi:10.1111/j.1467-9663.2011.00678.x