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Demographic Preferences and Income Segregation

Author

Listed:
  • Couture, Victor
  • Dingel, Jonathan
  • Green, Allison
  • Handbury, Jessie

Abstract

We investigate whether demographic preferences explain income segregation in shared spaces. To distinguish preferences over demographic composition from preferences over other venue characteristics, we study venue choices within business chains. We find two notable regularities: preferences for high-income co-patrons are similar across racial groups, and racial homophily does not vary by income. These demographic preferences are economically large, explain much of the cross-group variation in exposure to high-income co-patrons, and correlate with movers' neighborhood choices.

Suggested Citation

  • Couture, Victor & Dingel, Jonathan & Green, Allison & Handbury, Jessie, 2025. "Demographic Preferences and Income Segregation," CEPR Discussion Papers 19904, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19904
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    File URL: https://cepr.org/publications/DP19904
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    Keywords

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    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • L8 - Industrial Organization - - Industry Studies: Services
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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