David Card (University of California, Berkeley and NBER) Alexandre Mas (University of California, Berkeley and NBER) Jesse Rothstein (Princeton University and NBER)
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Schelling ("Dynamic Models of Segregation," Journal of Mathematical Sociology 1 (1971), 143-186) showed that extreme segregation can arise from social interactions in white preferences: once the minority share in a neighborhood exceeds a "tipping point," all the whites leave. We use regression discontinuity methods and Census tract data from 1970 through 2000 to test for discontinuities in the dynamics of neighborhood racial composition. We find strong evidence that white population flows exhibit tipping-like behavior in most cities, with a distribution of tipping points ranging from 5% to 20% minority share. Tipping is prevalent both in the suburbs and near existing minority enclaves. In contrast to white population flows, there is little evidence of nonlinearities in rents or housing prices around the tipping point. Tipping points are higher in cities where whites have more tolerant racial attitudes. (c) 2008 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology..
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Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000.
"Why Do the Poor Live in Cities?,"
NBER Working Papers
7636, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995.
"Crime and Social Interactions,"
NBER Working Papers
5026, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Edward L. Glaeser & Joseph Gyourko & Raven Saks, 2005.
"Why Have Housing Prices Gone Up?,"
NBER Working Papers
11129, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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Joseph Gyourko & Christopher Mayer & Todd Sinai, 2006.
"Superstar Cities,"
NBER Working Papers
12355, National Bureau of Economic Research, Inc.
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