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Social interactions, residential segregation and the dynamics of tipping

Author

Listed:
  • Trevor Kollmann

    (Swinburne University of Technology)

  • Simone Marsiglio

    (University of Pisa)

  • Sandy Suardi

    (University of Wollongong)

  • Marco Tolotti

    (Ca’ Foscari University of Venice)

Abstract

We develop an analytically tractable population dynamics model of heterogeneous agents to characterize how social interactions within a neighborhood determine the dynamic evolution of its ethnic composition. We characterize the conditions under which integration or segregation will occur, which depends on the majority’s social externality parameter and net benefit from leaving, and the minority’s leaving probability. Minority segregation may result from the process of tipping, which may arise from three possible channels: two are related to exogenous shocks (migration flows and changes in tipping points) and one is related to the endogenous probabilistic features of our framework (endogenous polarization). This characterization of integration and segregation conditions yields interesting policy implications for social and urban planning policies to mitigate segregation.

Suggested Citation

  • Trevor Kollmann & Simone Marsiglio & Sandy Suardi & Marco Tolotti, 2021. "Social interactions, residential segregation and the dynamics of tipping," Journal of Evolutionary Economics, Springer, vol. 31(4), pages 1355-1388, September.
    • Handle: RePEc:spr:joevec:v:31:y:2021:i:4:d:10.1007_s00191-021-00742-7
    DOI: 10.1007/s00191-021-00742-7
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    More about this item

    Keywords

    Residential segregation; Social interactions; Tipping;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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