Segregation and Racial Preferences: New Theoretical and Empirical Approaches
This paper investigates the role of preferences for social interactions or outcomes in determining observed patterns of racial segregation. In the theoretical section, consumers maximize utility by allocating time between personal time and social interactions within their neighborhood, and the dual of this problem is used to investigate the bidding and sorting of households over racial composition. The models suggests that African-American households may outbid white households to reside in white neighborhoods, and unlike previous models of segregation this model is consistent with either racial segregation or integration. In the empirical analysis, proxy variables are developed for unobservable attributes that enter household preferences based on measures of household outcomes and satisfaction, and then specifies an econometric model of residential location choice using those attributes. The paper finds evidence that racial differences in preferences for education can explain a substantial portion, but not all, of the racial segregation observed in 1985 Philadelphia using data from the American Housing Survey.
|Date of creation:||Apr 2002|
|Date of revision:||Apr 2003|
|Publication status:||Forthcoming in Annales d'Economie et de Statistique (2003)|
|Contact details of provider:|| Postal: |
Phone: (860) 486-4889
Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/
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.:
- Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March.
- Deng, Yongheng & Ross, Stephen L. & Wachter, Susan M., 2003.
"Racial differences in homeownership: the effect of residential location,"
Regional Science and Urban Economics,
Elsevier, vol. 33(5), pages 517-556, September.
- Yongheng Deng & Stephen L. Ross & Susan M. Wachter, 2002. "Racial Differences in Homeownership: The Effect of Residential Location," Working papers 2002-05, University of Connecticut, Department of Economics.
- BOCCARD, Nicolas & ZENOU, Yves, 1999.
"Racial discrimination and redlining in cities,"
CORE Discussion Papers
1999013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
- Benabou, Roland, 1993.
"Workings of a City: Location, Education, and Production,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 619-52, August.
- Roland Benabou, 1991. "Workings of a City: Location, Education, and Production," NBER Technical Working Papers 0113, National Bureau of Economic Research, Inc.
- David M. Cutler & Edward L. Glaeser, 1995.
"Are Ghettos Good or Bad?,"
NBER Working Papers
5163, National Bureau of Economic Research, Inc.
- 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.
- Schafer, Robert, 1979. "Racial discrimination in the Boston housing market," Journal of Urban Economics, Elsevier, vol. 6(2), pages 176-196, April.
- 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.
- Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999. "The Rise and Decline of the American Ghetto," Scholarly Articles 2770033, Harvard University Department of Economics.
- 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.
- Ann B. Schnare & C. Duncan MacRae, 1978. "The Dynamics of Neighbourhood Change," Urban Studies, Urban Studies Journal Limited, vol. 15(3), pages 327-331, October.
- Shelly Lundberg & Richard Startz, 1998.
"Race, Information, and Segregation,"
0047, University of Washington, Department of Economics.
- 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.
- George J. Borjas, 1997.
"To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation,"
NBER Working Papers
6176, National Bureau of Economic Research, Inc.
- Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September.
- Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
- Courant, Paul N., 1978. "Racial prejudice in a search model of the urban housing market," Journal of Urban Economics, Elsevier, vol. 5(3), pages 329-345, July.
- Gabriel, Stuart A & Rosenthal, Stuart S, 1989. "Household Location and Race: Estimates of Multinomial Logit Model," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 240-49, May.
- 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.
- John Yinger, 1978. "The Black-White Price Differential in Housing: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 54(2), pages 187-206.
When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:2002-04. 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: (Francis Ahking)
If references are entirely missing, you can add them using this form.