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Separate When Equal? Racial Inequality and Residential Segregation

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  • Patrick Bayer
  • Hanming Fang
  • Robert McMillan

Abstract

This paper hypothesizes that segregation in US cities increases as racial inequality narrows due to the emergence of middle-class black neighborhoods. Employing a novel research design based on life-cycle variations in the relationship between segregation and inequality, we test this hypothesis using the 1990 and 2000 Censuses. Indeed, increased black educational attainment in a city leads to a signifi cant rise in the number of middle-class black communities and segregation for older adults both in the cross-section and over time, consistent with our hypothesis. These fi ndings imply a negative feedback loop that inhibits reductions in racial inequality and segregation over time.

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Bibliographic Info

Paper provided by Duke University, Department of Economics in its series Working Papers with number 11-09.

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Length: 50
Date of creation: 2011
Date of revision:
Handle: RePEc:duk:dukeec:11-09

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/

Related research

Keywords: Segregation; Racial Inequality; Neighborhood Formation; Racial Sorting; General Equilibrium; Negative Feedback;

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References

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  1. Patrick J. Bayer & Robert McMillan & Kim Rueben, 2004. "What Drives Racial Segregation? New Evidence Using Census Microdata," Yale School of Management Working Papers ysm409, Yale School of Management.
  2. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  3. Ross, Stephen L., 1998. "Racial Differences in Residential and Job Mobility: Evidence Concerning the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 43(1), pages 112-135, January.
  4. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc.
  5. Durlauf, Steven N, 1996. " A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
  6. Vincent P. Miller & John M. Quigley, 1990. "Segregation by Racial and Demographic Group: Evidence from the San Francisco Bay Area," Urban Studies, Urban Studies Journal Limited, vol. 27(1), pages 3-21, February.
  7. Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999. "The Rise and Decline of the American Ghetto," Scholarly Articles 2770033, Harvard University Department of Economics.
  8. Benabou, R., 1991. "Location, Education, and Production," Working papers 582, Massachusetts Institute of Technology (MIT), Department of Economics.
  9. Rajiv Sethi & Rohini Somanathan, 2001. "Racial Income Disparities and the Measurement of Segregation," Urban/Regional 0107001, EconWPA.
  10. Vigdor, Jacob L., 2003. "Residential segregation and preference misalignment," Journal of Urban Economics, Elsevier, vol. 54(3), pages 587-609, November.
  11. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  12. Rajiv Sethi & Rohini Somanathan, 2004. "Inequality and segregation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-03, Indian Statistical Institute, New Delhi, India.
  13. Harsman, Bjorn & Quigley, John M., 1993. "The Spatial Segregation of Ethnic and Demographic Groups: Comparative Evidence from Stockholm and San Francisco," University of California Transportation Center, Working Papers qt910306b7, University of California Transportation Center.
  14. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "Residential Segregation in General Equilibrium," Working Papers 885, Economic Growth Center, Yale University.
  15. George C. Galster, 1982. "Black and White Preferences for Neighborhood Racial Composition," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(1), pages 39-66.
  16. Susan E. Mayer, 2000. "Income Inequality, Economic Segregation and Children's Educational Attainment," JCPR Working Papers 209, Northwestern University/University of Chicago Joint Center for Poverty Research.
  17. Shelly Lundberg & Richard Startz, 1998. "Race, Information, and Segregation," Working Papers 0047, University of Washington, Department of Economics.
  18. Berry, Steven & Waldfogel, Joel, 2005. "Product Quality and Market Size," Working Papers 1, Yale University, Department of Economics.
  19. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  20. King, A Thomas & Mieszkowski, Peter, 1973. "Racial Discrimination, Segregation, and the Price of Housing," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 590-606, May-June.
  21. Weinberg, Bruce A., 2000. "Black Residential Centralization and the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 48(1), pages 110-134, July.
  22. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  23. Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March.
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Citations

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Cited by:
  1. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc.
  2. Osiris Jorge, Parcero & Adolfo, Cristobal-Campoamor, 2009. "Dynamics of neighborhood formation and segregation by income," MPRA Paper 16936, University Library of Munich, Germany.
  3. Veronica Guerrieri & Daniel Hartley & Erik Hurst, 2010. "Endogenous gentrification and housing price dynamics," Working Paper 1008, Federal Reserve Bank of Cleveland.
  4. Olof Aslund & Oskar Nordström Skans, 2010. "Will I See You at Work? Ethnic Workplace Segregation in Sweden, 1985-2002," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(3), pages 471-493, April.
  5. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2008. "Neighbors And Co-Workers: The Importance Of Residential Labor Market Networks," NBER Working Papers 14201, National Bureau of Economic Research, Inc.
  6. Weinberg, Bruce A., 2013. "Group design with endogenous associations," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 411-421.
  7. Tugce Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," Discussion Paper Series, Department of Economics 201308, Department of Economics, University of St. Andrews.
  8. Elizabeth Oltmans Ananat, 2007. "The Wrong Side(s) of the Tracks Estimating the Causal Effects of Racial Segregation on City Outcomes," NBER Working Papers 13343, National Bureau of Economic Research, Inc.
  9. Anil Nathan, 2009. "Sorting and Statistical Discrimination in Schools: An Analysis Using the National Longitudinal Study of Adolescent Health," Working Papers 0905, College of the Holy Cross, Department of Economics.
  10. Dionissi Aliprantis & Daniel Carroll, 2012. "Neighborhood dynamics and the distribution of opportunity," Working Paper 1212, Federal Reserve Bank of Cleveland.
  11. Carlos Medina & Leonardo Morales & Jairo Nuñez, 2008. "Quality of Life in Urban Neighborhoods in Colombia:The Cases of Bogotá and Medellín," BORRADORES DE ECONOMIA 005126, BANCO DE LA REPÚBLICA.
  12. H. Spencer Banzhaf & Randall P. Walsh, 2010. "Segregation and Tiebout Sorting: Investigating the Link between Investments in Public Goods and Neighborhood Tipping," NBER Working Papers 16057, National Bureau of Economic Research, Inc.
  13. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, MIT Press, vol. 123(1), pages 177-218, 02.

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