Ethnic Segregation and Ghettos
Throughout history cities have contained separate areas where ethnic groups are concentrated. In the U.S. many older cities in the Northeast and Midwest contain large African-American ghettos. We discuss the causes and consequences of ethnic and racial segregation. We identify differences between voluntary and involuntary ghettos and we understand them using agglomeration economies, positive and negative externalities, bid rent theory, land and labor markets. We show that sharply segregated urban land use patterns can be socially efficient or inefficient depending on the nature of preferences and the externalities. Exclusionary policies often capture the economic efficiency. We observe a bewildering variety of political and public policy responses to segregation in Brazil, Cyprus, Europe, India, Israel, South Africa and the United States.
|Date of creation:||15 Aug 2004|
|Date of revision:|
|Note:||Type of Document - pdf; pages: 24. Prepared as a chapter for:A Companion to Urban Economics, an undergraduate reader, Blackwell publishers. Richard Arnott and Daniel McMillen, editors.|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- Galster, George C, 1977. "A Bid-Rent Analysis of Housing Market Discrimination," American Economic Review, American Economic Association, vol. 67(2), pages 144-55, March.
- Kain, John F & Quigley, John Michael, 1972. "Housing Market Discrimination, Homeownership, and Savings Behavior," American Economic Review, American Economic Association, vol. 62(3), pages 263-77, June.
- Anas, Alex, 2002. "Prejudice, exclusion, and compensating transfers: the economics of ethnic segregation," Journal of Urban Economics, Elsevier, vol. 52(3), pages 409-432, November.
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