Full Citation

Title: Can Wealth Explain Neighborhood Sorting by Race and Income? 06.13.18

Citation Type: Working Paper

Publication Year: 2018

ISBN:

ISSN: 2573-7953

DOI:

NSFID:

PMCID:

PMID:

Abstract: Why do high-income blacks live in neighborhoods with characteristics similar to those of low-income whites? One plausible explanation is wealth, since homeownership requires some wealth, and black households hold less wealth than white households at all levels of income. We present evidence against this hypothesis by showing that wealth does not predict sorting into neighborhood quality once race and income are taken into account. An alternative explanation is that the scarcity of high-quality black neighborhoods increases the cost of living in a high-quality neighborhood for black households with even weak race preferences. We present evidence in favor of this hypothesis by showing that sorting into neighborhood racial composition is similar across wealth levels conditional on race and income.

Url: https://www.clevelandfed.org/newsroom-and-events/publications/working-papers/2018-working-papers/wp-1808-wealth-and-neighborhood-sorting

User Submitted?: No

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

Series Title:

Publication Number: 18-08

Institution: Federal Reserve Bank of Cleveland

Pages:

Publisher Location: Cleveland, OH

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Other, Race and Ethnicity

Countries: