Abstract
Non-random sorting of residents into neighbourhoods provides neighbourhood effects researchers with a major challenge: The neighbourhoods which people ‘choose’ reflect their incomes, and as a result neighbourhood characteristics are endogenous, causing bias in models of neighbourhood effects. So understanding neighbourhood choice and neighbourhood dynamics is at the heart of a better understanding of neighbourhood effects, but is also crucial for literatures on residential mobility, segregation, and neighbourhood change. This chapter offers a state-of-the-art overview of literature on neighbourhood dynamics. First, a range of theories regarding neighbourhood dynamics are discussed. Second, the chapter offers an extensive summary of the 11 other chapters in this book, with empirical contributions from the United Kingdom, Australia, Sweden, The Netherlands, and the USA. Through this overview, this chapter offers insight into the latest developments in research on neighbourhood dynamics.
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