Neighbourhood Effects on Educational Attainment: Does Family Background Influence the Relationship?

Evidence of the existence of neighbourhood effects upon educational attainment remains inconclusive, though recently receiving increased attention. This study adds to the existing literature to identify whether neighbourhood deprivation impacts upon the educational outcomes of 16 year olds, adopting Longitudinal Survey of Young People in England (LSYPE) data. Using propensity score matching methods, the main results indicate that individuals living in a deprived neighbourhood are 4 percentage points less likely to obtain the expected age 16 educational outcomes relative to characteristically similar individuals living in non-deprived neighbourhoods. Additionally, significant differential neighbourhood effects are identified for individuals with parents educated to at least post-16 level, relative to individuals with below post-16 level educated parents. Findings suggest that individuals with educated parents are disadvantaged by living in a deprived neighbourhood to a greater extent than individuals with less educated parents.