What Explains Neighborhood Sorting by Income and Race?
Daniel Carroll and
Eric Young ()
No 201808R, Working Papers from Federal Reserve Bank of Cleveland
Why do high-income black households live in neighborhoods with characteristics similar to those of low-income white households? We find that neighborhood sorting by income and race cannot be explained by financial constraints: High-income, high-wealth black households live in similar-quality neighborhoods as low-income, low-wealth white households. We provide evidence that black households sort across neighborhoods according to some non-pecuniary factor(s) correlated with the racial composition of neighborhoods. Black households sorting into black neighborhoods can explain the racial gap in neighborhood quality at all income levels. The supply of high-quality black neighborhoods drives the neighborhood quality of black households.
Keywords: Race; Income; Neighborhood; Wealth (search for similar items in EconPapers)
JEL-codes: H72 J15 J18 R11 R21 (search for similar items in EconPapers)
Pages: 41 pages
New Economics Papers: this item is included in nep-geo, nep-ore and nep-ure
Note: First version June 2018 with the title “Can Wealth Explain Neighborhood Sorting by Race and Income?”
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201808r Full text (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwq:180801
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().