Will housing mix create social mix, and will social mix create social opportunity? This question is central in American and European urban debates. In Europe, however, there is a big gap between the political debates and actions regarding these issues and empirical research. In an effort to partly fill this gap, the authors critically evaluated the question above, applying a large-scale longitudinal Swedish data set covering the period 1991 to 1999 and available at the individual level for the entire population. The first part of the article reviews the various policies that are used in different European countries. The second part addresses the empirical analysis.

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Like many other Western European governments, the Swedish government has launched an area-based urban policy in order to solve the problems of the distressed neighbourhoods in the largest cities. However, in the current policy it is not clear whether the primary aim is to address the problems of individuals, or if the aim is to change the market position of the distressed areas. The intervention might be successful in terms of assisting residents in finding jobs and better education, but that might not improve the general position of the areas targeted, since people who make a socio-economic career very often move out of the areas, to be replaced by poorer and less well-established residents. By drawing upon a comprehensive and unique set of data the paper analyses the issues of residential mobility and selective migration, with special focus on distressed neighbourhoods in the Stockholm region. The results clearly indicate that the migration flows of these neighbourhoods are indeed selective. The people who move in are more likely to be unemployed and dependent on social benefits and have on average lower incomes than those who move out and those who remain in the neighbourhoods. This simultaneous outflow of relatively well-off residents and inflow of weaker and more marginalised groups has the effect of reproducing the distressed character of the neighbourhoods.

The issue of residential segregation has been on the Swedish political agenda since the early 1970s. This paper analyses the background for this interest, presents some basic features of socio-economic and ethnic residential segregation, and discusses some fundamental contextual properties regarding the Swedish welfare state, its institutional set-up and changes in housing and other policies that have affected the conditions for segregation processes. Three more specific anti-segregation policies are also identified and analysed: housing and social mix policy (first initiated in the 1970s); the refugee dispersal policy (initiated in the 1980s); and the area-based urban policy (initiated in the 1990s). Of these three, the last two have a clear ethnic focus while mix policies primarily aim for socio-economic and demographic mix. The analysis shows that none of the policies have managed to affect levels of segregation more than marginally, the reasons being ineffective implementation (the mix policy), failures in the design (the refugee dispersal policy) or conflicting aims inherent in the policy (area-based interventions).

This paper contributes to the literature on obtaining unbiased estimates of neighborhood effects, explored in the context of a centralized social welfare state. We employ a longitudinal database comprised of all working age adults in metropolitan Sweden 1991-1999 to investigate the degree to which neighborhood income mix relates to subsequent labor incomes of adults and how this relationship varies by gender and employment status. We control for unobserved, time-invariant individual characteristics by estimating a first-difference equation of changes in average incomes between the 1991-1995 and 1996-1999 periods. We further control for unobserved time varying characteristics through an analysis of non-movers. These methods substantially reduce the magnitude of the apparent effect of neighborhood shares of low-, middle-and high-income males. Nevertheless, statistically and substantively significant neighborhood effects persist, though relationships are nonlinear and vary by gender and employment status. Males who are not fully employed appear most sensitive to neighborhood economic mix in all contexts.