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The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement

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Abstract

This paper provides new evidence on the causal impacts of citywide racial segregation on intergenerational mobility. We use an instrumental variable approach that relies on plausibly exogenous variation in segregation due to the arrangement of railroad tracks in the 19th century. Our analysis finds that higher segregation reduces upward mobility for Black children from households across the income distribution and White children from low-income households. Moreover, segregation lowers academic achievement while increasing incarceration and teenage birth rates. An analysis of mechanisms shows that segregation reduces government spending, weakens support for antipoverty policies, and increases racially conservative attitudes among White residents.

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  • Eric Chyn & Kareem Haggag & Bryan Stuart, 2023. "The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement," Working Papers 23-18, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:96678
    DOI: 10.21799/frbp.wp.2023.18
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    1. Michal Bauer & Jana Cahlíková & Julie Chytilová & Gérard Roland & Tomáš Želinský, 2023. "Shifting Punishment onto Minorities: Experimental Evidence of Scapegoating," The Economic Journal, Royal Economic Society, vol. 133(652), pages 1626-1640.
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    7. Michael Tesler, 2012. "The Spillover of Racialization into Health Care: How President Obama Polarized Public Opinion by Racial Attitudes and Race," American Journal of Political Science, John Wiley & Sons, vol. 56(3), pages 690-704, July.
    8. Ellora Derenoncourt, 2022. "Can You Move to Opportunity? Evidence from the Great Migration," American Economic Review, American Economic Association, vol. 112(2), pages 369-408, February.
    9. Leah Platt Boustan, 2010. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 417-443.
    10. Collins, William J. & Wanamaker, Marianne H., 2015. "The Great Migration in Black and White: New Evidence on the Selection and Sorting of Southern Migrants," The Journal of Economic History, Cambridge University Press, vol. 75(4), pages 947-992, December.
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    Cited by:

    1. Kenneth Whaley, 2024. "Residential Segregation at Physical Neighborhood Boundaries," Working Papers 2024-02, University of South Florida, Department of Economics.

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    More about this item

    Keywords

    Race; Inequality; Intergenerational Mobility; Segregation; Discrimination;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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