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Segregation patterns in cities: ethnic clustering without skill differences

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  • Mariko Nakagawa

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Abstract

This study analyzes residential segregation by introducing the concept of ethnicity clustering externality. In an economy with two areas, namely the center and suburb, households with different ethnic characteristics (termed the majority and minority), both of which have identical skill levels, endogenously choose their residential location in the long run. By analyzing stable residential equilibria, we show that, because of their ethnic clustering preferences, minority residents are more likely to cluster in one area than majority residents. In addition, when the commuting cost is low, minority residents always cluster, widening the population gap between areas. At the same time, majority households migrate to a less crowded area to avoid the residential congestion caused by minority clustering, thus reducing the population gap. In this sense, the majority acts as an equalizer of population sizes between the center and suburb under low commuting costs. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Mariko Nakagawa, 2015. "Segregation patterns in cities: ethnic clustering without skill differences," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 453-483, December.
  • Handle: RePEc:spr:anresc:v:55:y:2015:i:2:p:453-483
    DOI: 10.1007/s00168-015-0709-6
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    References listed on IDEAS

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    Keywords

    R23; J15; R10;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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