Placing the poor while keeping the rich in their place
A central objective of modern US housing policy is deconcentrating poverty through "housing mobility programs" that move poor families into middle class neighborhoods. Pursuing these policies too aggressively risks inducing middle class flight, but being too cautious squanders the opportunity to help more poor families. This paper presents a stylized dynamicoptimization model that captures this tension. With base-caseparameter values, cost considerations limit mobility programs before flight becomes excessive. However, for modest departures reflecting stronger flight tendencies and/or weaker destination neighborhoods, other outcomes emerge. In particular, we find state-dependence and multiple equilibria, including both de-populated and oversized outcomes. For certain sets of parameters there exists a Skiba point that separates initial conditions for which the optimal strategy leads to substantial flight and depopulation from those for which the optimal strategy retains or even expands the middle class population. These results suggest the value of estimating middle-class neighborhoods' "carrying capacity" for absorbing mobility program placements and further modeling of dynamic response.
References listed on IDEAS
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- Betts, Julian R. & Fairlie, Robert W., 2003.
"Does immigration induce 'native flight' from public schools into private schools?,"
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- Fairlie, Robert, 2014. "Does Immigration Induce "Native Flight" from Public Schools into Private Schools?," Santa Cruz Department of Economics, Working Paper Series qt85s5v99k, Department of Economics, UC Santa Cruz.
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- Manski, C.F., 1991. "Identification of Endogenous Social Effects: the Reflection Problem," Working papers 9127, Wisconsin Madison - Social Systems.
- Xavier de Souza Briggs, 2003. "Housing opportunity, desegregation strategy, and policy research," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 201-206.
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- Robert Fairlie, 2002. "Private schools and “Latino flight” from black schoolchildren," Demography, Springer;Population Association of America (PAA), vol. 39(4), pages 655-674, November.
- Fairlie, Robert, 2014. "Private Schools and "Latino Flight" from Black Schoolchildren," Santa Cruz Department of Economics, Working Paper Series qt2t30n9gq, Department of Economics, UC Santa Cruz.
- Caulkins, Jonathan P. & Feichtinger, Gustav & Johnson, Michael & Tragler, Gernot & Yegorov, Yuri, 2005. "Skiba thresholds in a model of controlled migration," Journal of Economic Behavior & Organization, Elsevier, vol. 57(4), pages 490-508, August.
- George Galster, 1988. "Residential segregation in American cities: A contrary review," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 7(2), pages 93-112, May. Full references (including those not matched with items on IDEAS)
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