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What Explains Neighborhood Sorting by Income and Race?

Authors :
Eric R. Young
Daniel R. Carroll
Dionissi Aliprantis
Source :
Working paper (Federal Reserve Bank of Cleveland).
Publication Year :
2019
Publisher :
Federal Reserve Bank of Cleveland, 2019.

Abstract

Why do high-income black households live in neighborhoods with characteristics similar to those of low-income white households? We find that neighborhood sorting by income and race cannot be explained by financial constraints: High-income, high-wealth black households live in similar-quality neighborhoods as low-income, low-wealth white households. We provide evidence that black households sort across neighborhoods according to some non-pecuniary factor(s) correlated with the racial composition of neighborhoods. Black households sorting into black neighborhoods can explain the racial gap in neighborhood quality at all income levels. The supply of high-quality black neighborhoods drives the neighborhood quality of black households.

Details

ISSN :
25737953
Database :
OpenAIRE
Journal :
Working paper (Federal Reserve Bank of Cleveland)
Accession number :
edsair.doi...........ab497a1ba44271d22091f3410c73541d
Full Text :
https://doi.org/10.26509/frbc-wp-201808r