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Outside Options (Now) More Important than Race in Explaining Tipping Points in US Neighborhoods

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  • Peter Blair

    (Clemson University)

Abstract

I develop a revealed-preference method for estimating neighborhood tipping points. I find that census tract tipping points have increased from 15% (1970) to 42% (2010). The corresponding MSA tipping points have also increased from 13% (1970) to 35% (2010). While tipping points are traditionally associated with the racial attitudes of white households, I find that cross-sectional differences in MSA tipping points, going from 1970-2010, depend less on differences in the racial attitudes of white households and more on the outside options faced by white households. These results support a continued role for place-based policies in mitigating residential segregation.

Suggested Citation

  • Peter Blair, 2017. "Outside Options (Now) More Important than Race in Explaining Tipping Points in US Neighborhoods," Working Papers 2017-071, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2017-071
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Blair_2017_outside-options-more-important.pdf
    File Function: First version, September 24, 2017
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    References listed on IDEAS

    as
    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    preferences; race; Schelling model; tipping points; outside options;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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