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Title: Racial Fragmentation, Income Inequality and Social Capital Formation: New Evidence from the US

Citation Type: Miscellaneous

Publication Year: 2011

Abstract: Existing studies of social capital formation in US metropolitan areas have found that social capital is lower when there is more income inequality and greater racialfragmentation. I add to this literature by examining the role of income inequality between racial groups (racial income inequality). I fi nd that greater racial income inequality reduces social capital. Also, racial fragmentation is no longer a signifi cant determinant of social capital once racial income inequality is accounted for. This result is consistent with a simple conceptual framework where concurrent diff erences in race and income are especially detrimental for social capital formation. I find empirical support for further implications derivingfrom this assumption. In particular, I show that racial income inequality has a more detrimental eff ect in more racially fragmented communities and that trust falls more in minority groups than in the majority group when racial income inequality increases.

User Submitted?: No

Authors: Tesei, Andrea

Publisher: Universitat Pompeu Fabra

Data Collections: IPUMS USA

Topics: Other, Race and Ethnicity

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