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Racial Income Disparities and the Measurement of Segregation

Author

Listed:
  • Rajiv Sethi

    (Barnard College, Columbia University)

  • Rohini Somanathan

    (University of Michigan)

Abstract

Racial segregation in residential patterns remains pervasive in the United States. This persistence is usually attributed to some combination of neighborhood preferences over racial composition, discrimination in real estate and credit markets, and the effects of racial disparities in income. We propose a method for the decomposition of segregation measures into two components. One of these can be interpreted as the component of segregation that can be attributed to the effect of racial income disparities alone, while the other captures the combined effect of neighborhood preferences and discrimination. Applying the method to thirty major metropolitan areas, we find that the role played by racial income disparities in accounting for segregation is generally modest but varies significantly across cities.

Suggested Citation

  • Rajiv Sethi & Rohini Somanathan, 2001. "Racial Income Disparities and the Measurement of Segregation," Urban/Regional 0107001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpur:0107001
    Note: Type of Document - Tex; prepared on IBM PC; to print on HP/PostScript; pages: 18 ; figures: included
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0107/0107001.pdf
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    References listed on IDEAS

    as
    1. Nancy A. Denton & Douglas S. Massey, "undated". "Residential Segregation of Blacks, Hispanics, and Asians by Socioeconomic Status and Generation," University of Chicago - Population Research Center 88-2, Chicago - Population Research Center.
    2. 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.
    3. W. Clark, 1991. "Residential preferences and neighborhood racial segregation: A test of the schelling segregation model," Demography, Springer;Population Association of America (PAA), vol. 28(1), pages 1-19, February.
    4. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
    5. 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.
    6. George Galster, 1988. "Residential segregation in American cities: A contrary review," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 7(2), pages 93-112, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bayer, Patrick & Fang, Hanming & McMillan, Robert, 2014. "Separate when equal? Racial inequality and residential segregation," Journal of Urban Economics, Elsevier, vol. 82(C), pages 32-48.
    2. Rajiv Sethi & Rohini Somanathan, 2004. "Inequality and Segregation," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1296-1321, December.
    3. Richter, Francisca G.-C. & Craig, Ben R., 2013. "Lending patterns in poor neighborhoods," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 197-206.

    More about this item

    Keywords

    Residential Segregation; Racial Income Disparities; Index of Dissimilarity;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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