Inequality and the Measurement of Residential Segregation by Income In American Neighborhoods
American metropolitan areas have experienced rising residential segregation by income since 1970. One potential explanation for this change is growing income inequality. However, measures of residential sorting are typically mechanically related to the income distribution, making it difficult to identify the impact of inequality on residential choice. This paper presents a measure of residential segregation by income, the Centile Gap Index (CGI) which is based on income percentiles. Using the CGI, I find that a one standard deviation increase in income inequality raises residential segregation by income by 0.4-0.9 standard deviations. Inequality at the top of the distribution is associated with more segregation of the rich, while inequality at the bottom and declines in labor demand for less-skilled men are associated with residential isolation of the poor. Inequality can fully explain the rise in income segregation between 1970 and 2000.
|Date of creation:||Apr 2009|
|Date of revision:|
|Publication status:||published as Tara Watson, 2009. "Inequality And The Measurement Of Residential Segregation By Income In American Neighborhoods," Review of Income and Wealth, Blackwell Publishing, vol. 55(3), pages 820-844, 09.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
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.:
- Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007.
"Experimental Analysis of Neighborhood Effects,"
Econometric Society, vol. 75(1), pages 83-119, 01.
- Cutler, David M & Glaeser, Edward L, 1997.
"Are Ghettos Good or Bad?,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(3), pages 827-72, August.
- 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.
- Davidoff, Thomas, 2005. "Income sorting: Measurement and decomposition," Journal of Urban Economics, Elsevier, vol. 58(2), pages 289-303, September.
- P. A. Jargowsky, . "Take the money and run: Economic segregation in U.S. metropolitan areas," Institute for Research on Poverty Discussion Papers 1056-95, University of Wisconsin Institute for Research on Poverty.
- Stephen Machin, 2008. "An Appraisal of Economic Research on Changes in Wage Inequality," LABOUR, CEIS, vol. 22(s1), pages 7-26, 06.
- Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999.
"The Rise and Decline of the American Ghetto,"
2770033, Harvard University Department of Economics.
- Rappaport, Jordan & Kahn, Matthew E. & Glaeser, Edward, 2008.
"Why Do The Poor Live In Cities? The Role of Public Transportation,"
2958224, Harvard University Department of Economics.
- Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Susan E. Mayer, 2001.
"How the Growth in Income Inequality Increased Economic Segregation,"
JCPR Working Papers
230, Northwestern University/University of Chicago Joint Center for Poverty Research.
- 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.
- Edward L. Glaeser, 2007. "The Economics Approach to Cities," NBER Working Papers 13696, National Bureau of Economic Research, Inc.
- Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
- Anne C. Case & Lawrence F. Katz, 1991.
"The Company You Keep: The Effects of Family and Neighborhood on Disadvantaged Youths,"
NBER Working Papers
3705, National Bureau of Economic Research, Inc.
- Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14908. 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: ()
If references are entirely missing, you can add them using this form.