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Neighborhood Income Distributions

  • Yannis Ioannides

    ()

This paper studies purely empirically aspects of the distribution of income within small neighborhoods and contrasts it with the income distribution at higher level of aggregation, such as census tracts and metropolitan areas. It relies on a unique feature of the American Housing Survey, whose 1985, 1989 and 1993 waves provide data for small residential neighborhoods. These consist of a dwelling unit and up to ten of its nearest neighbors. The paper employs several parametric and nonparametric econometric tools to measure income sorting in US residential neighborhoods. It documents the patterns of dependence among neighbors’ income and imperfect sorting, with moderate but very significant correlation among incomes of neighbors and of considerable income mixing in U.S. neighborhoods. These results persist even if choice-based sampling and heterogeneity across the sample are accounted for. Neighborhoods associated with a randomly selected renter are more sorted than those associated with an owner even though such owners are more likely to define their neighborhoods.

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File URL: http://ase.tufts.edu/econ/papers/200419.pdf
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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0103.

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Date of creation: 2001
Date of revision:
Handle: RePEc:tuf:tuftec:0103
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  1. Kremer, M., 1996. "How Much Does Sorting Increase Inequality?," Working papers 96-18, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Danny Quah, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
  3. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Ioannides, Yannis M., 2002. "Residential neighborhood effects," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 145-165, March.
  5. Ioannides, Yannis M., 2003. "Interactive property valuations," Journal of Urban Economics, Elsevier, vol. 53(1), pages 145-170, January.
  6. Dennis Epple & Holger Sieg, 1999. "Estimating Equilibrium Models of Local Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 645-681, August.
  7. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
  8. Ellickson, Bryan, 1971. "Jurisdictional Fragmentation and Residential Choice," American Economic Review, American Economic Association, vol. 61(2), pages 334-39, May.
  9. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
  10. Yannis Ioannides, 2006. "Empirics of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0611, Department of Economics, Tufts University.
  11. Karen Eggleston, 2001. "Multitasking, Competition and Provider Payment," Discussion Papers Series, Department of Economics, Tufts University 0101, Department of Economics, Tufts University.
  12. Christopher J. Mayer, 1996. "Does location matter?," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 26-40.
  13. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
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