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Separate When Equal? Racial Inequality and Residential Segregation

  • Patrick Bayer
  • Hanming Fang
  • Robert McMillan

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.

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Paper provided by Duke University, Department of Economics in its series Working Papers with number 11-09.

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Length: 50
Date of creation: 2011
Date of revision:
Handle: RePEc:duk:dukeec:11-09
Contact details of provider: Postal:
Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097

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Web page: http://econ.duke.edu/

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  1. King, A Thomas & Mieszkowski, Peter, 1973. "Racial Discrimination, Segregation, and the Price of Housing," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 590-606, May-June.
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  10. Collins, William J. & Margo, Robert A., 2000. "Residential segregation and socioeconomic outcomes: When did ghettos go bad?," Economics Letters, Elsevier, vol. 69(2), pages 239-243, November.
  11. Patrick Bayer & Robert McMillan & Kim Rueben, 2002. "What Drives Racial Segregation? New Evidence Using Census Microdata," Working Papers 02-26, Center for Economic Studies, U.S. Census Bureau.
  12. Elizabeth Oltmans Ananat, 2011. "The Wrong Side(s) of the Tracks: The Causal Effects of Racial Segregation on Urban Poverty and Inequality," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 34-66, April.
  13. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  14. Rajiv Sethi & Rohini Somanathan, 2002. "Inequality and segregation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 02-06, Indian Statistical Institute, New Delhi, India.
  15. Shelly Lundberg & Richard Startz, 1998. "Race, Information, and Segregation," Working Papers 0047, University of Washington, Department of Economics.
  16. Vincent P. Miller & John M. Quigley, 1990. "Segregation by Racial and Demographic Group: Evidence from the San Francisco Bay Area," Urban Studies, Urban Studies Journal Limited, vol. 27(1), pages 3-21, February.
  17. Stuart A. Gabriel & Gary D. Painter, 2012. "Household Location And Race: A 20-Year Retrospective," Journal of Regional Science, Wiley Blackwell, vol. 52(5), pages 809-818, December.
  18. Vigdor, Jacob L., 2003. "Residential segregation and preference misalignment," Journal of Urban Economics, Elsevier, vol. 54(3), pages 587-609, November.
  19. Weinberg, Bruce A., 2000. "Black Residential Centralization and the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 48(1), pages 110-134, July.
  20. Ross, Stephen L., 1998. "Racial Differences in Residential and Job Mobility: Evidence Concerning the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 43(1), pages 112-135, January.
  21. Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March.
  22. Jan K. Brueckner & Stuart S. Rosenthal, 2005. "Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns be Rich?," CESifo Working Paper Series 1579, CESifo Group Munich.
  23. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc.
  24. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
  25. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 175-197.
  26. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  27. George C. Galster, 1982. "Black and White Preferences for Neighborhood Racial Composition," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(1), pages 39-66.
  28. John Yinger, 1978. "The Black-White Price Differential in Housing: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 54(2), pages 187-206.
  29. Rajiv Sethi & Rohini Somanathan, 2001. "Racial Income Disparities and the Measurement of Segregation," Urban/Regional 0107001, EconWPA.
  30. Benabou, R., 1991. "Location, Education, and Production," Working papers 582, Massachusetts Institute of Technology (MIT), Department of Economics.
  31. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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