The Early Evolution of Segregation and Neighborhood Disadvantage: Evidence from Stockholm During Industrialization, 1878–1950

Jakob Molinder and Martin Önnerfors
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Jakob Molinder: Uppsala History of Inequality and Labor Lab & IBF, Uppsala University
Martin Önnerfors: Uppsala History of Inequality and Labor Lab & IBF, Uppsala University

No 294, Working Papers from European Historical Economics Society (EHES)

Abstract: While the influence of neighborhoods on later life outcomes is well documented, the historical processes that shaped the growth and social makeup of urban areas are less understood. We address this by analyzing newly compiled geocoded data covering the entire population of Stockholm from 1878 to 1950. Until the 1920s, population growth stayed concentrated in the city center. After that point, expanding tram and light rail lines allowed the city to spread outward, creating more distance between homes and workplaces. Two main types of suburban areas emerged: some developed into enclaves for the elite, while others housed a mix of working-class and white-collar families. As a result, the upper class became more segregated from the broader population, while other social groups mixed more with each other, including the lowest-status households. Consequently, children from low-status families saw an improvement in the social standing of their closest neighbors, so poverty did not concentrate in ways that could have worsened negative neighborhood effects. We also examine the time spent in areas with high concentrations of low-status households, finding class inequality in the opportunity to escape, but little role for demographic factors such as the gender or marital status of the household head. Thus, while selective out-migration, similar to today, served to exacerbate the spatial concentration of disadvantage, the overall evolution of the spatial makeup of the city reduced negative exposure for children from the lowest-status households. Our results suggest that worse peer exposure for children from disadvantaged backgrounds is not a deterministic consequence of sprawl and elite isolation.

Keywords: segregation; neighborhoods; urbanization; industrialization; Stockholm; economic history (search for similar items in EconPapers)
JEL-codes: N33 N93 R23 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2026-01
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