Full Citation
Title: An Econometric Analysis of Household Location and Segregation
Citation Type: Dissertation/Thesis
Publication Year: 2002
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Abstract: This paper analyzes the impact that various public policies are likely to have in achieving a desegregation strategy that focuses on housing as outlined in United States et al. v. Board of School Commissioners of the City of Indianapolis, et al. Household level 1990 Census data for the 1990 Indianapolis Metropolitan Statistical Area, except for Madison County, is used to determine the likelihood that such policies will be successful. The analytical model is based on Gabriel and Rosenthals 1989 paper Household Location and Race: Estimates of a Multinomial Logit Model and McFaddens Choice Model (i.e. conditional logit model with both individual and choice-specific independent variables).There are three primary results from this paper: Gabriel and Rosenthals model can be expanded with McFaddens Choice Model to include variables representing the characteristics of the outcomes in addition to the characteristics of households, thereby, allowing for greater policy analysis economic variables (i.e. their coefficients) are statistically significant in household decision making regarding location race continues to play an important role in the locational choices of householdsThe housing related policies had very little favorable impact on the segregation indexes when viewed from a regional perspective, but were more effective when considering Marion County alone. From a regional perspective, it is possible that these policies would increase segregation because the coefficients of housing tenure and housing cost are not statistically significant for non-Caucasians, but are statistically significant for Caucasian households. On the issue of race, this analysis does not positively prove that racial discrimination or self-segregating preferences exists, but it rules out many other likely causes. If such race-based decision making is occurring, the fair housing and anti-discrimination policies contained in the desegregation order may have the greatest impact on desegregation of any policy in the desegregation agreements.
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Authors: Sears, Todd
Institution: Indiana University
Department: Department of Economics
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Degree: Master of Arts
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Data Collections: IPUMS USA
Topics: Housing and Segregation
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