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How Segregated Is Urban Consumption?

Author

Listed:
  • Donald R. Davis
  • Jonathan I. Dingel
  • Joan Monras
  • Eduardo Morales

Abstract

We provide measures of ethnic and racial segregation in urban consumption. Using Yelp reviews, we estimate how spatial and social frictions influence restaurant visits within New York City. Transit time plays a first-order role in consumption choices, so consumption segregation partly reflects residential segregation. Social frictions also affect restaurant choices: individuals are less likely to visit venues in neighborhoods demographically different from their own. While spatial and social frictions jointly produce significant levels of consumption segregation, we find that restaurant consumption is only about half as segregated as residences. Consumption segregation owes more to social than spatial frictions.

Suggested Citation

  • Donald R. Davis & Jonathan I. Dingel & Joan Monras & Eduardo Morales, 2019. "How Segregated Is Urban Consumption?," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1684-1738.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/701680
    DOI: 10.1086/701680
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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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