Full Citation

Title: The Wrong Side(s) of the Tracks: The Causal Effects of Racial Segregation on Urban Poverty and Inequality

Citation Type: Journal Article

Publication Year: 2011

ISBN:

ISSN:

DOI: 10.1257/app.3.2.34

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Abstract: A striking negative correlation exists between an area's residential racial segregation and its population characteristics, but it is recognized that this relationship may not be causal. I present a novel test of causality from segregation to population characteristics by exploiting the arrangements of railroad tracks in the nineteenth century to isolate plausibly exogenous variation in areas' susceptibility to segregation. I show that this variation satisfies the requirements for a valid instrument. Instrumental variables estimates demonstrate that segregation increases metropolitan rates of black poverty and overall black-white income disparities, while decreasing rates of white poverty and inequality within the white population.

Url: http://pubs.aeaweb.org/doi/10.1257/app.3.2.34

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Authors: Ananat, Elizabeth Oltmans

Periodical (Full): American Economic Journal: Applied Economics

Issue: 2

Volume: 3

Pages: 34-66

Data Collections: IPUMS USA

Topics: Housing and Segregation, Poverty and Welfare, Race and Ethnicity

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