The Stability of Mixed Income Neighborhoods in America
AbstractWhether people of differing types can live happily together is one of the most important social and political questions concerning urban areas. From a variety of theoretical perspectives, such mixing seems extremely unlikely. While the theoretical result seems well supported in the context of race, the evidence for income mixing is much less stark. Compared to the strict segregation predicted by the models (and embodied in the context of race), Americans live in economically diverse neighborhoods. While this has lead to some further theoretical experiments, the stability of this mixing has never been addressed as an empirical matter. It would be naïve to look at cross-sectional snapshots of income mixing as representing stable situations, since neighborhood change is a prevalent feature of American urban economies. This paper sketches out the empirical implications of slow transition towards the predicted equilibrium, and tests those implications. It is the first paper to directly evaluate the persistence and stability of mixed-income communities. The results are supportive of the three models of income segregation: income mixing appears to be unstable, although the adjustment process is slow. This work is of especial importance due to the focus mixed-income communities receive in the urban planning and policy.
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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3370.
Length: 61 pages
Date of creation: Feb 2008
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Housing Supply and Markets
- N9 - Economic History - - Regional and Urban History
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-15 (All new papers)
- NEP-GEO-2008-03-15 (Economic Geography)
- NEP-URE-2008-03-15 (Urban & Real Estate Economics)
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.:
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- Miller, Vincent P. & Quigley, John M., 1990.
"Segregation by Racial and Demographic Group: Evidence from the San Francisco Bay Area,"
University of California Transportation Center, Working Papers
qt1839w13f, University of California Transportation Center.
- Miller, Vincent P. & Quigley, John M., 1989. "Segregation by Racial and Demographic Group: Evidence from the San Francisco Bay Area," University of California Transportation Center, Working Papers qt5p86d7vw, University of California Transportation Center.
- Frankel, David M., 1998.
"A Pecuniary Reason for Income Mixing,"
Staff General Research Papers
11925, Iowa State University, Department of Economics.
- Miyao, Takahiro, 1978. "Dynamic Instability of a Mixed City in the Presence of Neighborhood Externalities," American Economic Review, American Economic Association, vol. 68(3), pages 454-63, June.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
- Terra McKinnish & T. Kirk White, 2010.
"Who Moves to Mixed-Income Neighborhoods?,"
10-18, Center for Economic Studies, U.S. Census Bureau.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.