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Racial and spatial interaction for neighborhood dynamics in Chicago

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  • Carlos Castro
  • Cristhian Rodriguez

Abstract

We look at the empirical validity of Schelling’s models for racial residential segregation applied to the case of Chicago. Most of the empirical literature has focused exclusively the single neighborhood model, also known as the tipping point model and neglected a multineighborhood approach or a unified approach. The multi-neighborhood approach introduced spatial interaction across the neighborhoods, in particular we look at spatial interaction across neighborhoods sharing a border. An initial exploration of the data indicates that spatial contiguity might be relevant to properly analyze the so call tipping phenomena of predominately non-Hispanic white neighborhoods to predominantly minority neighborhoods within a decade. We introduce an econometric model that combines an approach to estimate tipping point using threshold effects and a spatial autoregressive model. The estimation results from the model disputes the existence of a tipping point, that is a discontinuous change in the rate of growth of the non-Hispanic white population due to a small increase in the minority share of the neighborhood. In addition, we find that racial distance between the neighborhood of interest and the surrounding neighborhoods has an important effect on the dynamics of racial segregation in Chicago.

Suggested Citation

  • Carlos Castro & Cristhian Rodriguez, 2016. "Racial and spatial interaction for neighborhood dynamics in Chicago," Documentos de Trabajo 014589, Universidad del Rosario.
  • Handle: RePEc:col:000092:014589
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    References listed on IDEAS

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    1. Caner, Mehmet & Hansen, Bruce E., 2004. "Instrumental Variable Estimation Of A Threshold Model," Econometric Theory, Cambridge University Press, vol. 20(5), pages 813-843, October.
    2. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    3. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, Oxford University Press, vol. 123(1), pages 177-218.
    4. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    5. Easterly William, 2009. "Empirics of Strategic Interdependence: The Case of the Racial Tipping Point," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-35, June.
    6. Alejandro Badel & Christopher J. Martinek, 2011. "Black/white segregation in the Eighth District: a look at the dynamics," The Regional Economist, Federal Reserve Bank of St. Louis, issue July, pages 24-26.
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    More about this item

    Keywords

    Racial residential segregation; tipping point; spatial econometrics; Chicago.;
    All these keywords.

    JEL classification:

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

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