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Who Moves to Mixed-Income Neighborhoods?

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  • Terra McKinnish
  • T. Kirk White

Abstract

This paper uses confidential Census data, specifically the 1990 and 2000 Census Long Form data, to study the income dispersion of recent cohorts of migrants to mixed-income neighborhoods. If recent in-migrants to mixed-income neighborhoods exhibit high levels of income heterogeneity, this is consistent with stable mixed-income neighborhoods. If, however, mixed-income neighborhoods are comprised of older homogeneous lower-income (higher income) cohorts combined with newer homogeneous higher-income (lower-income) cohorts, this is consistent with neighborhood transition. Our results indicate that neighborhoods with high levels of income dispersion do in fact attract a much more heterogeneous set of in-migrants, particularly from the tails of the income distribution, but that income heterogeneity does tend to erode over time. Our results also suggest that the residents of mixed-income neighborhoods may be less heterogeneous with respect to lifetime income.

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File URL: ftp://ftp2.census.gov/ces/wp/2010/CES-WP-10-18.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 10-18.

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Length: 47 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:cen:wpaper:10-18

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  1. Frankel, D.M., 1995. "A Pecuniary Reason for Income Mixing," Papers 20-95, Tel Aviv.
  2. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
  3. McKinnish, Terra & Walsh, Randall & White, T. Kirk, 2007. "Who Gentrifies Low-income Neighborhoods?," MPRA Paper 6671, University Library of Munich, Germany, revised Nov 2007.
  4. Reynolds Farley, 1977. "Residential segregation in urbanized areas of the United States in 1970: An analysis of social class and racial differences," Demography, Springer, vol. 14(4), pages 497-518, November.
  5. Krupka, Douglas J., 2008. "The Stability of Mixed Income Neighborhoods in America," IZA Discussion Papers 3370, Institute for the Study of Labor (IZA).
  6. Anna Hardman & Yannis Ioannides, 2004. "Neighbors’ Income Distribution: Economic Segregation and Mixing in US Urban Neighborhoods," Discussion Papers Series, Department of Economics, Tufts University 0421, Department of Economics, Tufts University.
  7. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
  8. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  9. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  10. Susan E. Mayer, 2001. "How the Growth in Income Inequality Increased Economic Segregation," Working Papers 0117, Harris School of Public Policy Studies, University of Chicago.
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