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Beyond Racial Attitudes: The Role of Outside Options in the Dynamics of White Flight

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  • Peter Q. Blair

Abstract

When the fraction of minorities in a neighborhood exceeds the tipping point white flight accelerates. I develop a revealed-preference method to estimate the tipping points of 38,000 census tracts and the preferences of households for minority neighbors in the 123 Metropolitan Statistical Areas (MSA) covered by these census tracts over 40 years (1970-2010). I find that the average tipping point in an MSA initially covaries more with the racial attitudes of households than the outside options that they face but that this relationship reverses overtime. Ignoring outside options would obscure the declining role that racial attitudes play in understanding segregation.

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  • Peter Q. Blair, 2023. "Beyond Racial Attitudes: The Role of Outside Options in the Dynamics of White Flight," NBER Working Papers 31136, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31136
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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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