Inequality and segregation
This paper explores the manner in which race and income interact to determine patterns of residential location in metropolitan areas. We use a framework in which individuals care about both the level of affluence and the racial composition of their communities, and in which there are differences in income both within and between groups. Three main findings emerge. First, conditional on income, black households experience lower neighborhood quality relative to whites at any stable equilibrium. Second, extreme levels of segregation can be stable when racial income disparities are either large or negligible, but unstable in some intermediate range. Third, there exist multiple stable equilibria with very different levels of segregation when racial income disparities are sufficiently small. These results hold even when preferences are pro-integrationist, in the sense that racially mixed neighborhoods within a certain range are strictly preferred by all households to homogenous neighborhoods of either type.
|Date of creation:||Feb 2002|
|Date of revision:|
|Contact details of provider:|| Postal: 7, S. J. S. Sansanwal Marg, New Delhi - 110016|
Web page: http://www.isid.ac.in/~pu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bond, Eric W. & Coulson, N. Edward, 1989. "Externalities, filtering, and neighborhood change," Journal of Urban Economics, Elsevier, vol. 26(2), pages 231-249, September.
- Roland Benabou, 1991.
"Workings of a City: Location, Education, and Production,"
NBER Technical Working Papers
0113, National Bureau of Economic Research, Inc.
- Roland Benabou, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 619-652.
- Yinger, John, 1976. "Racial prejudice and racial residential segregation in an urban model," Journal of Urban Economics, Elsevier, vol. 3(4), pages 383-396, October.
- Raquel Fernandez & Richard Rogerson, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 135-164.
- Nancy A. Denton & Douglas S. Massey, . "Residential Segregation of Blacks, Hispanics, and Asians by Socioeconomic Status and Generation," University of Chicago - Population Research Center 88-2, Chicago - Population Research Center.
- David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999.
"The Rise and Decline of the American Ghetto,"
Journal of Political Economy,
University of Chicago Press, vol. 107(3), pages 455-506, June.
- David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1997. "The Rise and Decline of the American Ghetto," NBER Working Papers 5881, National Bureau of Economic Research, Inc.
- Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999. "The Rise and Decline of the American Ghetto," Scholarly Articles 2770033, Harvard University Department of Economics.
- de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
- 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.
- Amitabh Chandra, 2003. "Is the Convergence of the Racial Wage Gap Illusory?," NBER Working Papers 9476, National Bureau of Economic Research, Inc.
- Bénabou, Roland, 1993.
"Heterogeneity, Stratification and Growth,"
CEPR Discussion Papers
815, C.E.P.R. Discussion Papers.
- Steven N. Durlauf, 1992.
"A Theory of Persistent Income Inequality,"
NBER Working Papers
4056, National Bureau of Economic Research, Inc.
- Shelly Lundberg & Richard Startz, 1998.
"Race, Information, and Segregation,"
Discussion Papers in Economics at the University of Washington
0047, Department of Economics at the University of Washington.
- Kern, Clifford R., 1981. "Racial prejudice and residential segregation: The Yinger model revisited," Journal of Urban Economics, Elsevier, vol. 10(2), pages 164-172, September.
- Denton, N.A. & Massey, D.S., 1988. "Residential Segregation Of Blacks, Hispanics, And Asians By Socioeconomic Status And Generation," University of Chicago - Economics Research Center 88-2, Chicago - Economics Research Center.
- David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 828-58, August.
- Rajiv Sethi & Rohini Somanathan, 2001. "Racial Income Disparities and the Measurement of Segregation," Urban/Regional 0107001, EconWPA.
- Epple, Dennis & Platt, Glenn J., 1998. "Equilibrium and Local Redistribution in an Urban Economy when Households Differ in both Preferences and Incomes," Journal of Urban Economics, Elsevier, vol. 43(1), pages 23-51, January.
When requesting a correction, please mention this item's handle: RePEc:ind:isipdp:02-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar)
If references are entirely missing, you can add them using this form.