Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Wrong Side(s) of the Tracks Estimating the Causal Effects of Racial Segregation on City Outcomes

Contents:

Author Info

  • Elizabeth Oltmans Ananat
Registered author(s):

    Abstract

    At the metropolitan level there is a striking negative correlation between residential racial segregation and population characteristics -- particularly for black residents -- but it is widely recognized that this correlation may not be causal. This paper provides a novel test of the causal relationship between segregation and population outcomes by exploiting the arrangements of railroad tracks in the 19th century to isolate plausibly exogenous variation in cities' susceptibility to segregation. I show that, conditional on miles of railroad track laid, the extent to which track configurations physically subdivided cities strongly predicts the level of segregation that ensued after the Great Migration of African-Americans to northern and western cities in the 20th century. At the start of the Great Migration, though, track configurations were uncorrelated with racial concentration, ethnic dispersion, income, industry, education, and population, indicating that reverse causality is unlikely. Instrumental variables estimates demonstrate that segregation leads to lower incomes and lower education among blacks. For whites, there is a mix of positive and negative effects: segregation decreases the probability of being a college graduate or a high earner, but also decreases the probability of being poor or unemployed. Segregation could generate these effects either by affecting human capital acquisition of residents of different races and socio-economic groups ('production') or by inducing sorting by race and SES into different cities ('selection'). This paper provides evidence that is most consistent with a combination of both production and selection.

    Download Info

    If 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.
    File URL: http://www.nber.org/papers/w13343.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13343.

    as in new window
    Length:
    Date of creation: Aug 2007
    Date of revision:
    Publication status: published as American economic journal : a journal of the American Economic Association. - Nashville, Tenn. : Assoc., ISSN 1945-7782, ZDB-ID 24423841. - Vol. 3.2011, 2, p. 34-66
    Handle: RePEc:nbr:nberwo:13343

    Note: CH
    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. David Card & Jesse Rothstein, 2005. "Racial Segregation and the Black-White Test Score Gap," Working Papers 879, Princeton University, Department of Economics, Industrial Relations Section..
    2. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June.
    3. William J. Collins, 2001. "Race, Roosevelt, and Wartime Production: Fair Employment in World War II Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 272-286, March.
    4. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    5. Roland Benabou, 1994. "Education, Income Distribution and Growth: The Local Connection," NBER Working Papers 4798, National Bureau of Economic Research, Inc.
    6. 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.
    7. Card, David & Krueger, Alan B, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 151-200, February.
    8. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    9. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
    10. Patrick Bayer & Hanming Fang & Robert McMillan, 2011. "Separate When Equal? Racial Inequality and Residential Segregation," Working Papers 11-09, Duke University, Department of Economics.
    11. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
    12. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 2005. "Is the Melting Pot Still Hot? Explaining the Resurgence of Immigrant Segregation," NBER Working Papers 11295, National Bureau of Economic Research, Inc.
    13. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291 Elsevier.
    14. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
    15. Vigdor, Jacob L., 2002. "The Pursuit of Opportunity: Explaining Selective Black Migration," Journal of Urban Economics, Elsevier, vol. 51(3), pages 391-417, May.
    16. Collins, William J. & Margo, Robert A., 2000. "Residential segregation and socioeconomic outcomes: When did ghettos go bad?," Economics Letters, Elsevier, vol. 69(2), pages 239-243, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Stephen L. Ross, 2009. "Social Interactions within Cities: Neighborhood Environments and Peer Relationships," Working papers 2009-31, University of Connecticut, Department of Economics.
    2. Leah Platt Boustan & Robert A. Margo, 2007. "Race, Segregation, and Postal Employment: New Evidence on Spatial Mismatch," NBER Working Papers 13462, National Bureau of Economic Research, Inc.
    3. Leah Platt Boustan & Robert A. Margo, 2011. "White Suburbanization and African-American Home Ownership, 1940-1980," NBER Working Papers 16702, National Bureau of Economic Research, Inc.
    4. Ananat, Elizabeth Oltmans & Washington, Ebonya, 2009. "Segregation and Black political efficacy," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 807-822, June.
    5. Simon Burgess & Deborah Wilson & Adam Briggs & Anete Piebalga, 2008. "Segregation and the Attainment of Minority Ethnic Pupils in England," The Centre for Market and Public Organisation 08/204, Department of Economics, University of Bristol, UK.
    6. Robert Bifulco & Delia Furtado & Stephen L. Ross, 2009. "Why Are Ghettos Bad? Examining the Role of the Metropolitan Educational Environment," Working papers 2009-30, University of Connecticut, Department of Economics.
    7. Weinhardt, Felix, 2013. "Neighborhood Quality and Student Performance," IZA Discussion Papers 7139, Institute for the Study of Labor (IZA).
    8. Leah Platt Boustan, 2013. "Racial Residential Segregation in American Cities," NBER Working Papers 19045, National Bureau of Economic Research, Inc.
    9. Ananat, Elizabeth Oltmans & Washington, Ebonya, 2008. "Segregation and Black Political Efficacy," Working Papers 30, Yale University, Department of Economics.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:13343. See general 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: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.