Residential Segregation at Physical Neighborhood Boundaries

Kenneth Whaley

No 2024-02, Working Papers from University of South Florida, Department of Economics

Abstract: Physical boundaries delineate neighborhoods and are distinguishable from administrative boundaries like school districts and county lines. This paper sheds light on historic railroad placement as a predictor of contemporary segregation by employing a digitized map of Texas railroads circa 1911 to compare census block groups separated by train tracks today. Using a boundary discontinuity design, I first document an unconditional house price premium of 21% to live on the high income side of the tracks. Exploiting distinct variation in race and income demographics at railroad boundaries, I obtain hedonic estimates of the price premium for white population share and income composition. Conditional on differences in school quality and access to private consumption amenities, households are willing to pay up to 16% of home price for the race and income composition available on the high income side of the tracks.

JEL-codes: J15 O18 R23 (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-lab and nep-ure
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Citations: View citations in EconPapers (1)

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