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Location of the poor : neighborhood versus household characteristics. The case of Bogotá

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  • Juliana Aguilar
  • Tito Yepes

Abstract

Latin American cities are characterized by a high correlation between the location chosen by poor households and their income level. However, it is difficult to identify to what extent they live there by choice because it maximizes the returns to their efforts or by restrictions that pull them to locations that make them poorer. We define the former case as unrestricted sorting in the urban economics context, while the latter is assumed to be the commonly used definition of segregation. Distinguishing between these alternatives is difficult because of the circular relationship between poverty and location. People can freely choose a location that makes them poor or they can choose a location because they are poor.

Suggested Citation

  • Juliana Aguilar & Tito Yepes, 2014. "Location of the poor : neighborhood versus household characteristics. The case of Bogotá," Working Papers Series. Documentos de Trabajo 11559, Fedesarrollo.
    • Handle: RePEc:col:000123:011559
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    File URL: http://hdl.handle.net/11445/231
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    References listed on IDEAS

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    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    2. Edward L. Glaeser, 2007. "The Economics Approach to Cities," NBER Working Papers 13696, National Bureau of Economic Research, Inc.
    3. Michael Kremer, 1997. "How Much does Sorting Increase Inequality?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 115-139.
    4. Patrick Bayer & Christopher Timmins, 2007. "Estimating Equilibrium Models Of Sorting Across Locations," Economic Journal, Royal Economic Society, vol. 117(518), pages 353-374, March.
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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