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Title: What Explains Neighborhood Sorting by Income and Race?

Citation Type: Miscellaneous

Publication Year: 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 evi- dence 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 neigh- borhoods 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.

Url: https://intranet.weatherhead.case.edu/document-upload/docs/1767.pdf

User Submitted?: No

Authors: Aliprantis, Dionissi; Carroll, Daniel, R; Young, Eric, R

Publisher: Federal Reserve Bank of Cleveland

Data Collections: IPUMS USA

Topics: Poverty and Welfare, Race and Ethnicity

Countries: United States

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