1. John F. Kain Housing Segregation, Negro Employment, and Metropolitan Decentralization Quarterly Journal of Economics 82 (1968) Presentation by Aida K. Lipe

2. What is this article about? Negro residential segregation. Segregation in Detroit and Chicago. Racial discrimination in housing market may increase Negro unemployment rate. Postwar dispersal of population and employment in Chicago.

3. Housing segregation affects the distribution and level of Negro employment It is necessary to comprehend the the location and growth in metropolitan areas. Negro residential segregation indexes have been calculated from block statistics for 207 cities in 1960 and 109 cities in 1940 and 1950. A value of “0” indicates that every block has the same portion of Negroes. A value of “100”indicates segregated distribution wherein each block contains only whites or Negroes, but not both. Negroes are far more segregated than any other ethnic or racial group.

4. Segregation in Detroit and Chicago Detroit Chicago Nonwhite ghettos lie within Nonwhite ghettos lie in the Central City. the South Side of C. City. Detroit’s principal ghetto Chicago’s principal ghetto houses approximately 93% houses approximately 96% of Detroit’s nonwhite work of Chicago’s nonwhite force. work force. Detroit City segregation Chicago City segregation indexes: indexes: 1940 89.9 95.0 1950 88.8 92.1 1960 84.5 92.6

5. Housing market segregation may affect the distribution and level of Negro employment H igh transportation cost. The distance of reaching jobs may discourage them from from seeking employment. Less information and less opportunity to learn about new jobs. Discrimination of employers outside the ghettos. Employers in the ghetto may discriminate in favor of Negroes.

6. Regression Model Detroit R  (1) W = 12.78 + 0.091R - 1.141dn 0.359 (2) W = 12.64 + 0.100R - 0.758dm 0.382 (3) W = 13.45 + 0.082R - 0.563dn - 0.52dm 0.40 Chicago (4) W = 9.18 + 0.458R - 0.521dn 0.78 (5) W = 9.28 + 0.456R - 0.409dm 0.782 (6) W = 9.36 + 0.455R - 0.324dn - 0.176dm 0.785 W = Employment Ratio R  = Residence Ratio dn & dm = respectively, distance from the nearest and the major ghetto

7. Results Coefficients of the residence ratio much larger in Chicago than in Detroit. Distance coefficients are much larger in Detroit than in Chicago. These findings seem to suggest that housing market segregation does strongly affect the location of Negro employment.

8. Racial discrimination in housing market reduces Negro employment opportunities. Estimate Negro job loss caused by housing segregation assuming, Residence ratio is identical for each zone and dn and dm equal zero. Multiplying the estimated percentage nonwhites times total number employed in Chicago or Detroit. Subtracting estimated nonwhite employment from actual. This will be “the looses of Negro jobs”. Chicago: 22,157 - 24,622 Detroit: 3,863-9,113

9. Postwar dispersal of population in Chicago 1950-60

10. Postwar dispersal of employment 1947-1963

11. Conclusion From the analyses of data for Chicago and Detroit metropolitan areas, Housing market segregation affects the distribution of Negro employment. Housing market segregation may reduce the level of Negro employment and contribute to high unemployment rates of metropolitan Negroes. Postwar suburbanization of metropolitan employment may be undermining the position of the Negro.