Demographic Preferences and Income Segregation

Victor Couture, Jonathan Dingel, Allison E. Green and Jessie Handbury

No 33386, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study how preferences over the demographic composition of co-patrons affects income segregation in shared spaces. To distinguish demographic preferences from tastes for other venue attributes, we study venue choices within business chains. We find two notable regularities: preferences for high-income co-patrons are similar across racial groups, and racial homophily does not vary by income. These demographic preferences are economically large, explain much of the cross-group variation in exposure to high-income co-patrons, and correlate with movers' neighborhood choices.

JEL-codes: C55 D12 J1 L8 R2 R4 (search for similar items in EconPapers)
Date: 2025-01
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