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Measuring the effects of segregation in the presence of social spillovers: A nonparametric approach

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  • Graham, Bryan S.
  • Imbens, Guido W.
  • Ridder, Geert

Abstract

In this paper we nonparametrically analyze the effects of reallocating individuals across social groups in the presence of social spillovers. Individuals are either ‘high’ or ‘low’ types. Own outcomes may vary with the fraction of high types in one’s social group. We characterize the average outcome and inequality effects of small increases in segregation by type. We also provide a measure of average spillover strength. We generalize the setup used by Benabou (1996) and others to study sorting in the presence of social spillovers by incorporating unobserved individual- and group-level heterogeneity. We relate our reallocation estimands to this theory. For each estimand we provide conditions for nonparametric identification, propose estimators, and characterize their large sample properties. We also consider the social planner’s problem. We illustrate our approach by studying the effects of sex segregation in classrooms on mathematics achievement.

Suggested Citation

  • Graham, Bryan S. & Imbens, Guido W. & Ridder, Geert, 2025. "Measuring the effects of segregation in the presence of social spillovers: A nonparametric approach," Journal of Econometrics, Elsevier, vol. 252(PB).
    • Handle: RePEc:eee:econom:v:252:y:2025:i:pb:s0304407625000600
    DOI: 10.1016/j.jeconom.2025.106006
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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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