What explains neighborhood sorting by income and race?

Dionissi Aliprantis, Daniel Carroll and Eric Young

Journal of Urban Economics, 2024, vol. 141, issue C

Abstract: Why do Black households live in neighborhoods with much lower socioeconomic status (SES) than the neighborhoods of white households with similar incomes? The explanation is not wealth. High-income, high-wealth Black households live in neighborhoods with similar SES as low-income, low-wealth white households. Instead, we provide evidence that many Black households prefer low-SES neighborhoods with Black residents to high-SES neighborhoods without Black residents. The variety of neighborhood SES available in a metro’s Black neighborhoods, which is typically low, drives the neighborhood SES of Black households.

Keywords: Neighborhood; Income; Wealth; Race; Homophily (search for similar items in EconPapers)
JEL-codes: J15 J18 R11 R23 (search for similar items in EconPapers)
Date: 2024
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Working Paper: What Explains Neighborhood Sorting by Income and Race? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:141:y:2024:i:c:s0094119022000845

DOI: 10.1016/j.jue.2022.103508

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