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Who moves to mixed-income neighborhoods?

  • McKinnish, Terra
  • White, T. Kirk

This paper uses confidential Census data, specifically the 1990 and 2000 Census Long Form data, to study the income dispersion of recent cohorts of migrants to mixed-income neighborhoods. We investigate whether neighborhoods with high levels of income dispersion attract economically diverse in-migrants. If recent in-migrants to mixed-income neighborhoods exhibit high levels of income dispersion, this is consistent with stable mixed-income neighborhoods. If, however, mixed-income neighborhoods are comprised of homogenous low-income (high-income) cohorts of long-term residents combined with homogenous high-income (low-income) cohorts of recent arrivals, this is consistent with neighborhood transition. Our results indicate that neighborhoods with high levels of income dispersion do in fact attract a much more heterogeneous set of in-migrants, particularly from the tails of the income distribution. Our results also suggest that the residents of mixed-income neighborhoods may be less heterogeneous with respect to lifetime income.

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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 41 (2011)
Issue (Month): 3 (May)
Pages: 187-195

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Handle: RePEc:eee:regeco:v:41:y:2011:i:3:p:187-195
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  1. Hardman, Anna & Ioannides, Yannis M., 2004. "Neighbors' income distribution: economic segregation and mixing in US urban neighborhoods," Journal of Housing Economics, Elsevier, vol. 13(4), pages 368-382, December.
  2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  3. McKinnish, Terra & Walsh, Randall & Kirk White, T., 2010. "Who gentrifies low-income neighborhoods?," Journal of Urban Economics, Elsevier, vol. 67(2), pages 180-193, March.
  4. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
  5. Reynolds Farley, 1977. "Residential segregation in urbanized areas of the United States in 1970: An analysis of social class and racial differences," Demography, Springer, vol. 14(4), pages 497-518, November.
  6. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  7. Frankel, D.M., 1995. "A Pecuniary Reason for Income Mixing," Papers 20-95, Tel Aviv.
  8. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
  9. Susan E. Mayer, 2001. "How the Growth in Income Inequality Increased Economic Segregation," JCPR Working Papers 230, Northwestern University/University of Chicago Joint Center for Poverty Research.
  10. Krupka, Douglas J., 2008. "The Stability of Mixed Income Neighborhoods in America," IZA Discussion Papers 3370, Institute for the Study of Labor (IZA).
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