Adolescence socioeconomic segregation and high-skill jobs in adulthood

Abstract

The influence of neighborhood environments on children’s future outcomes has attracted significant scholarly attention in recent years. This study contributes to the existing literature by examining how neighborhood segregation during adolescence affects the likelihood of securing a high-skill occupation in adulthood. Utilizing comprehensive Swedish microdata, we control for intergenerational persistence in labor market outcomes and cognitive abilities through military enlistment data. Our findings show that growing up in neighborhoods characterized by high poverty and low educational attainment reduces the probability of pursuing jobs that require advanced higher education. In contrast, obtaining managerial positions seems less influenced by socioeconomic background. Furthermore, our findings reveal that obtaining a higher education and relocating to metropolitan areas can help mitigate neighborhood disadvantages, underscoring the importance of spatial mobility and access to university studies for disadvantaged youth. However, socioeconomic disadvantages at the family level remain persistent and challenging to overcome.