Outside Options (Now) More Important than Race in Explaining Tipping Points in US Neighborhoods

Peter Blair

No 2017-071, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: I develop a revealed-preference method for estimating neighborhood tipping points. I find that census tract tipping points have increased from 15% (1970) to 42% (2010). The corresponding MSA tipping points have also increased from 13% (1970) to 35% (2010). While tipping points are traditionally associated with the racial attitudes of white households, I find that cross-sectional differences in MSA tipping points, going from 1970-2010, depend less on differences in the racial attitudes of white households and more on the outside options faced by white households. These results support a continued role for place-based policies in mitigating residential segregation.

Keywords: preferences; race; Schelling model; tipping points; outside options (search for similar items in EconPapers)
JEL-codes: J60 R21 R23 (search for similar items in EconPapers)
Date: 2017-09
New Economics Papers: this item is included in nep-ure
Note: MIP
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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