1. PAI786: Urban Policy Class 11: Residential Segregation: Measurement, Causes, Consequences

2. PAI786, Class 11: Residential Segregation Journals Journal due date: Wednesday, March 9; 2 entries are required. 1. A descriptive entry on an urban area of your choice. ▫Search for basic data. ▫Tell me what you think is interesting about the area. ▫Say something about sorting. 2. An analytical entry on either (1) housing problems and housing policy or (2) discrimination, segregation, racial transition. This is analogous to a take-home exam question, except you get to pick the question. ▫Identify a policy problem. ▫Think about the behavior involved. ▫Find some evidence that you find compelling. ▫Evaluate alternative policy responses. A second analytical entry on one of these two broad topics is optional.

3. PAI786, Class 11: Residential Segregation Class Outline ▫Measurement of Segregation ▫Causes of Segregation ▫Consequences of Segregation

4. PAI786, Class 11: Residential Segregation Definition of Segregation ▫Segregation is the physical separation of different groups = a synonym for sorting. ▫We focus on racial and ethnic residential segregation, but many other kinds of segregation exist (in schools, firms, occupations, etc.). ▫Segregation is a complex social phenomenon, with many different dimensions.

5. PAI786, Class 11: Residential Segregation Measures of Segregation ▫Dissimilarity Index: Evenness of segregation ▫Isolation Index: Potential contact between groups ▫Delta Index: Relative physical space occupied ▫Centralization Index: Degree to which a group lives near the CBD ▫Proximity Index: Degree to which a group lives in contiguous areas

6. PAI786, Class 11: Residential Segregation The Dissimilarity Index ▫The dissimilarity index, D, is the most common measure of discrimination. ▫It indicates the share of either group that would have to move to reach an even distribution. ▫Its formula is:

7. PAI786, Class 11: Residential Segregation Black-White Segregation ▫In the case of black-white segregation, over the last 40 years we have seen declines in segregation measured by  Dissimilarity Index  Isolation Index ▫And little change in segregation (up to 2000) using  Delta Index  Centralization Index  Proximity Index

8. PAI786, Class 11: Residential Segregation Segregation Indexes for Blacks Source: Glaeser/Vigdor

9. PAI786, Class 11: Residential Segregation Segregation Indexes for Blacks Source: Glaeser/Vigdor

10. PAI786, Class 11: Residential Segregation Glaeser/Vigdor based on census tracts; Frey based on census block-groups. Black-White Dissimilarity Indexes for Nation's Largest Metro Areas Glaeser/VigdorFrey 20002010 20002010 New York68.764.780.278.0 Los Angeles58.454.570.067.8 Chicago77.971.981.276.4 Dallas-Ft. Worth53.747.559.856.6 Philadelphia67.062.671.068.4 Houston56.047.865.761.4 Washington, D.C.59.756.163.862.3 Miami63.658.169.264.8 Atlanta61.054.164.359.0 Boston62.657.667.664.0 Average62.957.5 69.365.9

11. PAI786, Class 11: Residential Segregation Most Segregated Areas for Blacks Source: Frey, Population Studies Center, University of Michigan Note: Only 1 in the West (LA) and 1 in the South (Birmingham). Rank (2010)Name199020002010 1Milwaukee-Waukesha-West Allis, WI82.883.381.5 2New York-Northern New Jersey-Long Island, NY-NJ-PA80.980.278.0 3Chicago-Naperville-Joliet, IL-IN-WI84.481.276.4 4Detroit-Warren-Livonia, MI87.685.775.3 5Cleveland-Elyria-Mentor, OH82.878.274.1 6Buffalo-Niagara Falls, NY80.178.073.2 7St. Louis, MO-IL77.274.172.3 8Cincinnati-Middletown, OH-KY-IN75.973.769.4 9Philadelphia-Camden-Wilmington, PA-NJ-DE-MD75.271.068.4 10Los Angeles-Long Beach-Santa Ana, CA72.770.067.8 11Syracuse, NY73.071.467.8 12Bridgeport-Stamford-Norwalk, CT69.269.667.5 13Youngstown-Warren-Boardman, OH-PA74.772.767.5 14Dayton, OH76.673.066.4 15Indianapolis-Carmel, IN74.472.166.4 16Birmingham-Hoover, AL70.369.165.8 17Pittsburgh, PA70.868.965.8 18Harrisburg-Carlisle, PA74.371.165.7 19Baltimore-Towson, MD71.468.265.4 20Toledo, OH74.471.265.3

12. PAI786, Class 11: Residential Segregation Perspective on Black-White Segregation ▫Comparisons with 1900 are misleading; social segregation did not require residential segregation back then.  As late as the 1960s, many southern cities had low segregation indexes because black workers in white homes lived close by. ▫Cities with large black populations have seen relatively little decline in segregation. ▫Black-white segregation is still much greater than Hispanic/non-Hispanic or Asian-white segregation.

13. PAI786, Class 11: Residential Segregation Perspective on Black-White Segregation, 2 ▫Nevertheless, the widespread decline in the dissimilarity and exposure indexes is an important phenomenon. ▫Before the Fair Housing Act, many blacks were denied entry into suburban neighborhoods. ▫Now a black family that is persistent enough to overcome discrimination at the levels observed in audits can obtain housing almost anywhere, ▫And the number of all-white suburbs has declined substantially.

14. PAI786, Class 11: Residential Segregation Hispanic/Non-Hispanic-White Segregation ▫In the case of Hispanic-white segregation, the decades preceding 2000 saw increases in segregation measured by  Dissimilarity Index  Isolation Index ▫And little change in segregation using  Delta Index  Centralization Index  Proximity Index

15. PAI786, Class 11: Residential Segregation Dissimilarity Index for Hispanics (Frey) Hispanic/Non-Hispanic-White Dissimilarity Indexes, 10 Largest Metropolitan Areas, 1990-2010 199020002010 New York-Northern New Jersey-Long Island, NY-NJ-PA66.265.662.0 Los Angeles-Long Beach-Santa Ana, CA60.362.562.2 Chicago-Naperville-Joliet, IL-IN-WI61.460.756.3 Dallas-Fort Worth-Arlington, TX48.852.350.3 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD60.958.555.1 Houston-Sugar Land-Baytown, TX47.853.452.5 Washington-Arlington-Alexandria, DC-VA-MD-WV41.847.448.3 Miami-Fort Lauderdale-Pompano Beach, FL32.559.057.4 Atlanta-Sandy Springs-Marietta, GA35.351.649.5 Boston-Cambridge-Quincy, MA-NH59.362.559.6 Syracuse, NY39.644.442.2 Average (102 Areas with Population > 500,000)38.643.943.5

16. PAI786, Class 11: Residential Segregation Dissimilarity Index for Asians (Frey) Asian-White Dissimilarity Indexes for the 10 Largest Metropolitan Areas, 1990-2010 199020002010 New York-Northern New Jersey-Long Island, NY-NJ-PA47.450.851.9 Los Angeles-Long Beach-Santa Ana, CA43.547.948.4 Chicago-Naperville-Joliet, IL-IN-WI46.546.844.9 Dallas-Fort Worth-Arlington, TX41.845.646.6 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD42.444.142.3 Houston-Sugar Land-Baytown, TX48.051.450.4 Washington-Arlington-Alexandria, DC-VA-MD-WV34.538.738.9 Miami-Fort Lauderdale-Pompano Beach, FL26.833.334.2 Atlanta-Sandy Springs-Marietta, GA42.546.948.5 Boston-Cambridge-Quincy, MA-NH45.547.845.4 Syracuse, NY45.248.151.5 Average (102 Areas with Population > 500,000)38.439.839.7

17. PAI786, Class 11: Residential Segregation Hypersegregation ▫Hypersegregation exists when an area ranks highly (e.g. above 60 for D) on four of the five dimensions of segregation (Massey and Denton, Social Forces 1989). ▫Massey and Tannen (Demography 2015) find  Blacks were hypersegregated in 21 urban areas in 2010. ▫Hypersegregation is rare for Hispanics (LA and NYC in 2000) and nonexistent for Asians.

18. PAI786, Class 11: Residential Segregation Hypersegregation Trends (Massey/Tannen)

19. PAI786, Class 11: Residential Segregation Black-White Hypersegregation (Massey/Tannen)

20. PAI786, Class 11: Residential Segregation Causes of Segregation ▫Discrimination ▫Preferences (which are based on experiences) ▫Income differences (which reflect past and current discrimination)

21. PAI786, Class 11: Residential Segregation Causes of Segregation: Discrimination ▫Discrimination in housing obviously can contribute to segregation. ▫Specifically, segregation is reinforced by  Denial of information about available housing,  Racial/ethnic steering,  Lack of cooperation in completing transactions. ▫Audit studies show that discrimination persists.

22. PAI786, Class 11: Residential Segregation Causes of Segregation: Attitudes ▫Using data from Atlanta, Boston, and LA, Ihlanfeldt and Scafidi examine the simultaneity between racial attitudes and racial segregation (Housing Studies 2004).  Whites’ neighborhood racial preferences play an important role in explaining the racial composition of their neighborhoods.  Inter-racial contact in neighborhoods and workplaces leads to a greater willingness among whites to live with blacks.

23. PAI786, Class 11: Residential Segregation Causes of Segregation: Attitudes, 2 ▫Another study (Boustan, QJE 2010) finds that  “The distinctive American pattern—in which blacks live in cities and whites in suburbs—was enhanced by a large black migration from the rural South. I show that whites responded to this black influx by leaving cities…. The best causal estimates imply that each black arrival led to 2.7 white departures.”

24. PAI786, Class 11: Residential Segregation Causes of Segregation: Income ▫Income sorting and segregation  The basic logic of income-taste sorting suggests that socio-economic differences between groups will contribute to residential segregation. ▫A recent study of the San Francisco area (Bayer, MacMillan, Rueben, JUE 2004) finds that education, income, language, and immigration status, explain  Almost 95% of segregation for Hispanic households  Over 50% of segregation Asian households, and  Only 30% of segregation for Black households.

25. PAI786, Class 11: Residential Segregation Consequences of Segregation: ▫Differences in opportunities. ▫Persistence of stereotypes and prejudice. ▫Segregation is an outcome that becomes a cause!

26. PAI786, Class 11: Residential Segregation Segregation and Opportunities ▫Spatial Mismatch Hypothesis  Kain (QJE 1968): High unemployment among blacks is due to mismatch between their residences and location of jobs—and to factors maintaining segregation.  Some evidence to support this (more jobs nearby = lower unemployment for blacks).  But recent evidence indicates that having more jobs held by whites nearby does not lower black unemployment (Hellerstein, Neumark, and McInerney, JUE 2008)—a sign of discrimination in labor markets.

27. PAI786, Class 11: Residential Segregation Segregation and Opportunities, Cont. ▫Another approach is to determine whether blacks have poorer socio-economic outcomes in urban areas with higher levels of segregation (Cutler and Glaeser, QJE 1997). ▫Higher segregation leads to larger white- black gaps in employment, earnings, not being a single mother, and high-school graduation. ▫A one-standard deviation decrease in segregation would cut the black-white gap on most outcomes by one-third.

28. PAI786, Class 11: Residential Segregation Segregation and Prejudice ▫Remember the evidence from Ihlanfeldt and Scafidi:  Inter-racial contact in neighborhoods and workplaces leads to a greater willingness among whites to live with blacks.  It follows that a lack of contact undermines the willingness of whites to live with blacks.