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

Eric Chyn, Kareem Haggag and Bryan A. Stuart

No 30563, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper provides new evidence on the causal impacts of city-wide 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 nineteenth 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 anti-poverty policies, and increases racially conservative attitudes for White residents.

JEL-codes: D63 H0 J0 R0 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-his, nep-lab and nep-ure
Note: CH ED LS PE POL
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Working Paper: The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement (2023)
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