Tiebout Sorting and Neighborhood Stratification
AbstractTiebout’s classic 1956 paper has strong implications regarding stratification across and within jurisdictions, predicting (in the simplest instance) a hierarchy of internally homogeneous communities, ordered by household income. In practice, urban areas tend to exhibit varying degrees of within-neighborhood mixing, likely attributable to departures from several standard Tiebout assumptions – the fact that households are influenced by more than public goods packages when deciding where to live, the heterogeneous nature of the housing stock, and the role of employment geography, given commuting costs are non-zero. To shed light on the way these factors influence observed residential mixing, this paper quantifies the separate contributions of employment geography and housing preferences in reducing neighborhood stratification. It does so using an equilibrium sorting model, estimated with rich Census micro-data. Simulations based on the model using credibly-identified demand estimates show that counterfactual reductions in commuting costs lead to marked increases in education segregation and, to a lesser degree, increases in income segregation, as households now find it easier to locate in neighborhoods with similar households. In contrast, turning off preferences for housing characteristics actually reduces income segregation, indicating that the nonuniform distribution of housing serves to stratify households based on ability-to-pay. Related, we show that differences in housing also help accentuate differences in the consumption of local amenities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 10-48.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/
Tiebout Sorting; Residential Choice; Neighborhood Stratification; Local Public Goods;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics Webmaster).
If references are entirely missing, you can add them using this form.