Segregation and Racial Preferences: New Theoretical and Empirical Approaches
AbstractThis paper investigates the role of preferences for social interactions or outcomes in determining observed patterns of racial segregation. In the theoretical section, consumers maximize utility by allocating time between personal time and social interactions within their neighborhood, and the dual of this problem is used to investigate the bidding and sorting of households over racial composition. The models suggests that African-American households may outbid white households to reside in white neighborhoods, and unlike previous models of segregation this model is consistent with either racial segregation or integration. In the empirical analysis, proxy variables are developed for unobservable attributes that enter household preferences based on measures of household outcomes and satisfaction, and then specifies an econometric model of residential location choice using those attributes. The paper finds evidence that racial differences in preferences for education can explain a substantial portion, but not all, of the racial segregation observed in 1985 Philadelphia using data from the American Housing Survey.
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 2002-04.
Length: 44 pages
Date of creation: Apr 2002
Date of revision: Apr 2003
Publication status: Forthcoming in Annales d'Economie et de Statistique (2003)
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Other versions of this item:
- Stephen L. ROSS, 2003. "Ségrégation and Racial Preferences: New Theoretical and Empirical Approaches," Annales d'Economie et de Statistique, ENSAE, issue 71-72, pages 143-172.
- D1 - Microeconomics - - Household Behavior
- D4 - Microeconomics - - Market Structure and Pricing
- J7 - Labor and Demographic Economics - - Labor Discrimination
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
This paper has been announced in the following NEP Reports:
- NEP-DCM-2002-10-18 (Discrete Choice Models)
- NEP-LTV-2002-09-21 (Unemployment, Inequality & Poverty)
- NEP-MIC-2002-10-18 (Microeconomics)
- NEP-URE-2002-10-18 (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.:
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