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Inequality and segregation

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Author Info
Rajiv Sethi (rs328@columbia.edu)
Rohini Somanathan () (Indian Statistical Institute, New Delhi)

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Abstract

Despite the decline in group inequality and the rapid expansion of the black middle class in the United States, major urban centers with significant black populations continue to exhibit extreme levels of racial separation. Using a theoretical framework in which individuals care both about the level of affluence and the racial composition of their communities, we show that no monotonic relationship exists between narrowing racial income disparities and segregation even when all households prefer somewhat integrated communities to segregated ones. Low racial inequality is consistent with extreme and even rising levels of segregation in cities where the minority population is large. Our results can help explain why racial segregration continues to characterize the urban landscape in the United States even though survey evidence suggests that all groups favor more integration than they did in the past.

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Publisher Info
Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-03.

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Length: 28 pages
Date of creation: Feb 2004
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Handle: RePEc:ind:isipdp:04-03

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  7. Kern, Clifford R., 1981. "Racial prejudice and residential segregation: The Yinger model revisited," Journal of Urban Economics, Elsevier, vol. 10(2), pages 164-172, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patrick Bayer & Hanming Fang & Robert McMillan, 2005. "Separate When Equal? Racial Inequality and Residential Segregation," NBER Working Papers 11507, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Jean Louis Dessalles & Denis Phan, 2005. "Emergence in multi-agent systems:Cognitive hierarchy, detection, and complexity reduction," Computing in Economics and Finance 2005 257, Society for Computational Economics. [Downloadable!]
  3. Shubham Chaudhuri & Rajiv Sethi, 2003. "Statistical Discrimination with Neighborhood Effects: Can Integration Eliminate Negative Stereotypes?," Game Theory and Information 0312001, EconWPA. [Downloadable!]
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  4. Brendan O'Flaherty & Rajiv Sethi, 2004. "Racial stereotypes and robbery," Discussion Papers 0405-15, Columbia University, Department of Economics. [Downloadable!]
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  5. Samuel Bowles & Rajiv Sethi, 2006. "Social Segregation and the Dynamics of Group Inequality," Working Papers 2006-02, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  6. La Ferrara, Eliana & Mele, Angelo, 2006. "Racial Segregation and Public School Expenditure," CEPR Discussion Papers 5750, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Shelly Lundberg & Richard Startz, 2007. "Information and racial exclusion," Journal of Population Economics, Springer, vol. 20(3), pages 621-642, July. [Downloadable!] (restricted)
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  8. Guido Cozzi & Fabio Privileggi, 2009. "The fractal nature of inequality in a fast growing world: new version," Working Papers 2009_30, Department of Economics, University of Glasgow. [Downloadable!]
  9. Calabrese, Stephen & Epple, Dennis & Romer, Thomas & Sieg, Holger, 2005. "Local Public Good Provision: Voting, Peer Effects, and Mobility," Papers 10-04-2005, Princeton University, Research Program in Political Economy. [Downloadable!]
  10. Alberto Alesina & Eliana La Ferrara, 2004. "Ethnic Diversity and Economic Performance," NBER Working Papers 10313, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Samuel Bowles & Glenn C. Loury & Rajiv Sethi, 2009. "Group Inequality," Economics Working Papers 0088, Institute for Advanced Study, School of Social Science. [Downloadable!]
  12. Rajiv Sethi & Rohini Somanathan, 2009. "Racial Inequality And Segregation Measures--Some Evidence From The 2000 Census," Working papers 177, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
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  13. Osiris Jorge, Parcero & Adolfo, Cristobal-Campoamor, 2009. "Dynamics of neighborhood formation and segregation by income," MPRA Paper 16936, University Library of Munich, Germany. [Downloadable!]
  14. Stephen Calabrese & Dennis Epple & Thomas Romer & Holger Sieg, 2005. "Local Public Good Provision: Voting, Peer Effects, and Mobility," NBER Working Papers 11720, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Maurizio Iacopetta, 2006. "Human Capital Dispersion and Incentives to Innovate," DEGIT Conference Papers c011_013, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  16. Rajiv Sethi & Muhamet Yildiz, 2009. "Public Disagreement," Economics Working Papers 0089, Institute for Advanced Study, School of Social Science. [Downloadable!]
  17. Roland G. Fryer, Jr. & Glenn C. Loury, 2005. "Affirmative Action and Its Mythology," NBER Working Papers 11464, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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