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Separate When Equal? Racial Inequality and Residential Segregation

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  • Patrick Bayer
  • Hanming Fang
  • Robert McMillan

Abstract

This paper hypothesizes that segregation in US cities increases as racial inequality narrows due to the emergence of middle-class black neighborhoods. Employing a novel research design based on life-cycle variations in the relationship between segregation and inequality, we test this hypothesis using the 1990 and 2000 Censuses. Indeed, increased black educational attainment in a city leads to a signifi cant rise in the number of middle-class black communities and segregation for older adults both in the cross-section and over time, consistent with our hypothesis. These fi ndings imply a negative feedback loop that inhibits reductions in racial inequality and segregation over time.

Suggested Citation

  • Patrick Bayer & Hanming Fang & Robert McMillan, 2011. "Separate When Equal? Racial Inequality and Residential Segregation," Working Papers 11-09, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:11-09
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    More about this item

    Keywords

    Segregation; Racial Inequality; Neighborhood Formation; Racial Sorting; General Equilibrium; Negative Feedback;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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