The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement

Eric Chyn, Kareem Haggag () and Bryan Stuart
Additional contact information
Kareem Haggag: https://www.anderson.ucla.edu/faculty-and-research/behavioral-decision-making/faculty/haggag
Bryan Stuart: https://www.philadelphiafed.org/our-people/bryan-stuart

No 23-18, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: This paper provides new evidence on the causal impacts of citywide racial segregation on intergenerational mobility. We use an instrumental variable approach that relies on plausibly exogenous variation in segregation due to the arrangement of railroad tracks in the 19th century. Our analysis finds that higher segregation reduces upward mobility for Black children from households across the income distribution and White children from low-income households. Moreover, segregation lowers academic achievement while increasing incarceration and teenage birth rates. An analysis of mechanisms shows that segregation reduces government spending, weakens support for antipoverty policies, and increases racially conservative attitudes among White residents.

Keywords: Race; Inequality; Intergenerational Mobility; Segregation; Discrimination (search for similar items in EconPapers)
JEL-codes: J15 J62 J71 R31 (search for similar items in EconPapers)
Pages: 64
Date: 2023-09-05
New Economics Papers: this item is included in nep-his, nep-lab and nep-ure
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Related works:
Working Paper: The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:96678

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DOI: 10.21799/frbp.wp.2023.18

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