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How the Growth in Income Inequality Increased Economic Segregation

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  • Susan E. Mayer

Abstract

Households became more geographically segregated by income in the United States between 1970 and 1990. Economic inequality also increased between 1970 and 1990. Using 1970, 1980, and 1990 Census data, I find that an increase in income inequality at the state level is associated with an increased in economic segregation in the state. The increase in segregation was not mainly the result of a decline in within-neighborhood economic heterogeneity. Economic inequality between households in the same census tract hardly changed between 1970 and 1990. The increase in segregation was mainly due to an increase in the variance of mean neighborhood income. This has important implications for interpreting the consequences of increases in economic segregation and for understanding why economic inequality and economic segregation are related.

Suggested Citation

  • Susan E. Mayer, 2001. "How the Growth in Income Inequality Increased Economic Segregation," Working Papers 0117, Harris School of Public Policy Studies, University of Chicago.
    • Handle: RePEc:har:wpaper:0117
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    2. McKinnish, Terra & White, T. Kirk, 2011. "Who moves to mixed-income neighborhoods?," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 187-195, May.
    3. Hardman, Anna & Ioannides, Yannis M., 2004. "Neighbors' income distribution: economic segregation and mixing in US urban neighborhoods," Journal of Housing Economics, Elsevier, vol. 13(4), pages 368-382, December.
    4. Andros Kourtellos & Chih Ming Tan & Steven N. Durlauf, 2022. "The Great Gatsby Curve," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 571-605, August.
    5. John R. Logan & Andrew Foster & Jun Ke & Fan Li, 2017. "The Uptick in Income Segregation: Real Trend or Random Sampling Variance," NBER Working Papers 23656, National Bureau of Economic Research, Inc.
    6. John R. Logan & Andrew Foster & Hongwei Xu & Wenquan Zhang, 2020. "Income Segregation: Up or Down, and for Whom?," NBER Working Papers 27045, National Bureau of Economic Research, Inc.
    7. Tara Watson, 2009. "Inequality And The Measurement Of Residential Segregation By Income In American Neighborhoods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 820-844, September.
    8. Louafi Bouzouina, 2006. "Densité résidentielle et ségrégation spatiale : le cas des aires urbaines françaises," Post-Print halshs-00175769, HAL.
    9. Farzana Chowdhury & David B. Audretsch, 2024. "Paradoxes of accelerator programs and new venture performance: Do varieties of experiences make a difference?," Small Business Economics, Springer, vol. 62(1), pages 381-409, January.
    10. Lincoln Quillian & Hugues Lagrange, 2016. "Socioeconomic Segregation in Large Cities in France and the United States," Demography, Springer;Population Association of America (PAA), vol. 53(4), pages 1051-1084, August.
    11. Thompson Jeffrey P. & Leight Elias, 2012. "Do Rising Top Income Shares Affect the Incomes or Earnings of Low and Middle-Income Families?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-38, November.
    12. Susan E. Mayer, 2001. "How Economic Segregation Affects Children's Educational Attainment," Working Papers 0118, Harris School of Public Policy Studies, University of Chicago.
    13. Andrés Ham Gonzalez, 2011. "La Calidad de Vida en los Barrios de Buenos Aires: Estimaciones Hedónicas de la Valuación de los Amenities Urbano y su Distribución Espacial," Department of Economics, Working Papers 088, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    14. John R. Logan & Andrew Foster & Hongwei Xu & Wenquan Zhang, 2020. "Income Segregation: Up or Down, and for Whom?," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1951-1974, October.
    15. Christopher H. Wheeler & Elizabeth A. La Jeunesse, 2008. "Trends In Neighborhood Income Inequality In The U.S.: 1980–2000," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 879-891, December.
    16. Piero Cipollone & Andrea Brandolini, 2002. "Urban Poverty in Developed Countries," LIS Working papers 329, LIS Cross-National Data Center in Luxembourg.
    17. Claude Fischer & Gretchen Stockmayer & Jon Stiles & Michael Hout, 2004. "Distinguishing the geographic levels and social dimensions of U.S. metropolitan segregation, 1960–2000," Demography, Springer;Population Association of America (PAA), vol. 41(1), pages 37-59, February.
    18. Wilkinson, Richard G. & Pickett, Kate E., 2007. "The problems of relative deprivation: Why some societies do better than others," Social Science & Medicine, Elsevier, vol. 65(9), pages 1965-1978, November.

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