Abstract. The selective inflow and outflow of residents of different ethnic groups is the main mechanism behind ethnic residential segregation. In many studies it has been found that ethnic minorities are more likely than others to move to high-ethnic-minorityconcentration neighbourhoods. An important question which remains largely unanswered is whether this can be explained by own-group effects, including own-group preferences, or by other neighbourhood factors. We use unique longitudinal register data from the Netherlands, which allow us to distinguish between different ethnic minority groups and simultaneously to take into account multiple neighbourhood characteristics. This allows us to test own-group effects-the effect of the share of the own-ethnic group on neighbourhood selection-while also taking into account other neighbourhood characteristics such as housing market composition. Using a conditional logit model, we find that housing-market constraints can partly explain the moves of ethnic minorities to high-ethnic-minority-concentration neighbourhoods: own-group effects are also found to be important in explaining neighbourhood selection. There are, however, important differences between ethnic minority groups. While these effects together explain why Surinamese and Antilleans move to high-ethnic-minority-concentration neighbourhoods, Turks and Moroccans are still found to move to neighbourhoods with concentrations of minorities other than their own ethnic group.

Studies of neighborhood effects often attempt to identify causal effects of neighborhood characteristics on individual outcomes, such as income, education, employment, and health. However, selection looms large in this line of research, and it has been argued that estimates of neighborhood effects are biased because people nonrandomly select into neighborhoods based on their preferences, income, and the availability of alternative housing. We propose a two-step framework to disentangle selection processes in the relationship between neighborhood deprivation and earnings. We model neighborhood selection using a conditional logit model, from which we derive correction terms. Driven by the recognition that most households prefer certain types of neighborhoods rather than specific areas, we employ a principle components analysis to reduce these terms into eight correction components. We use these to adjust parameter estimates from a model of subsequent neighborhood effects on individual income for the unequal probability that a household chooses to live in a particular type of neighborhood. We apply this technique to administrative data from the Netherlands. After we adjust for the differential sorting of households into certain types of neighborhoods, the effect of neighborhood income on individual income diminishes but remains significant. These results further emphasize that researchers need to be attuned to the role of selection bias when assessing the role of neighborhood effects on individual outcomes. Perhaps more importantly, the persistent effect of neighborhood deprivation on subsequent earnings suggests that neighborhood effects reflect more than the shared characteristics of neighborhood residents: place of residence partially determines economic well-being.

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Dutch policy-makers perceive high shares of ethnic minorities in neighbourhoods as a problem; it might generate fewer opportunities for minorities to have contact with the native Dutch population and thereby hinder integration. The question, however, is whether the ethnic composition of neighbourhoods influences interethnic contact. In this paper, the focus is on the leisure contact of people from ethnic minorities aged 15 to 65 with native Dutch people. Binary logistic multilevel analysis shows that contact with native Dutch people is mainly explained by individual characteristics. In addition, living in one of the four largest cities-cities with high shares of minorities at the city level-leads to less contact with native Dutch people. The ethnic composition of the neighbourhood has no effect on contact, therefore segregation at the neighbourhood level does not necessarily hinder integration.