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Tipping and the Effects of Segregation

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  • Anders Böhlmark
  • Alexander Willén

Abstract

We analyze how neighborhood ethnic population composition affects the short- and long-run education and labor market outcomes of natives and immigrants. To overcome the problem of nonrandom sorting across neighborhoods, we borrow theoretical insights from the tipping point literature and exploit estimated tipping thresholds as instruments for changes in ethnic population composition. Our results provide little evidence in support of the idea that living in a neighborhood with a higher immigrant share leads to worse outcomes.

Suggested Citation

  • Anders Böhlmark & Alexander Willén, 2020. "Tipping and the Effects of Segregation," American Economic Journal: Applied Economics, American Economic Association, vol. 12(1), pages 318-347, January.
    • Handle: RePEc:aea:aejapp:v:12:y:2020:i:1:p:318-47
    DOI: 10.1257/app.20170579
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    Cited by:

    1. Elif S. Filiz, 2022. "Does it Payoff to be Blond in a Non-Blond Neighborhood? Eye Color, Hair Color, Ethnic Composition and Starting Wages," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(1), pages 122-146, January.
    2. Dodini, Samuel & Willén, Alexander & Zhu, Julia Li, 2023. "The Role of Labor Unions in Immigrant Integration," Discussion Paper Series in Economics 24/2023, Norwegian School of Economics, Department of Economics.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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