The long shadow of local decline:birthplace economic conditions, political attitudes, and long-term individual economic outcomes in the UK

Does growing up in a high-unemployment area matter for individual economic and political outcomes? Despite a significant focus upon the links between place of residence, life outcomes and political attitudes of individuals, there is less evidence on how local economic conditions at birth shape individual wages and political attitudes over the longterm. This paper links the British Household Panel Survey (BHPS) micro data from English and Welsh respondents with historic localised information on unemployment. Our results, which control for composition effects, family background, and sorting of people across places, show that being born into a high-unemployment Local Authority has a significant, long-term impact on individual’s economic outcomes, decreasing earnings in adulthood. Even accounting for individual economic outcomes, being born into a local authority of high unemployment makes individuals more economically left-wing, with a greater belief in an obligation for the government to provide jobs, but also less culturally tolerant. These results contribute to the debate on the nature and rationales of placebased policy solutions.