Concentrated poverty and neighbourhood effects: youth marginalisation in Buenos Aires’ informal settlements

Abstract

This paper provides evidence for the relationship between concentrated poverty as manifested in the informal settlements and the labour market in the city of Buenos Aires. It also examines the consequences that these have on the social marginalisation of young people. First, it analyses the effects of residential location in informal settlements on labour market access. Secondly, it examines the results of multivariate analyses which measure the net effect of living in informal settlements on key indicators of youth marginalisation, as well as the interrelation of the effects of family educational and occupational status. The results demonstrate that the spatial concentration of poverty in informal settlements is linked to labour market segmentation, and is a central determinant of urban marginality. For young people, the very fact of living in informal settlements, in households with highly precarious employment status, significantly increases their risk of marginalisation in a cumulative manner. These findings point to the importance of adopting an integral approach that addresses the dynamics of deprivation in a multi-dimensional and multi-level setting.