IDEAS home Printed from https://ideas.repec.org/a/fip/fedcec/98540.html
   My bibliography  Save this article

Neighborhood Sorting, Metros, and Tomorrow’s Labor Force

Author

Abstract

In this Economic Commentary, we look at how households sort into neighborhoods in different metro areas and analyze these patterns by race, ethnicity, and income. We find that in many metros, Black households face a significant tradeoff between a neighborhood’s Black population share and its socioeconomic status (SES), with many high-income Black households residing in lower SES neighborhoods than is the case for white households of similar income. A similar pattern exists for Hispanic households. Because a neighborhood’s SES correlates with the labor market outcomes of the children who grow up there, these sorting patterns could, over time, act to limit workforce productivity, and individual earnings, by restraining skill acquisition for youth residing in under-resourced areas.

Suggested Citation

  • Daniel R. Carroll & Christopher J. Walker, 2024. "Neighborhood Sorting, Metros, and Tomorrow’s Labor Force," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2024(12), pages 1-8, July.
    • Handle: RePEc:fip:fedcec:98540
    DOI: 10.26509/frbc-ec-202412
    as

    Download full text from publisher

    File URL: https://doi.org/10.26509/frbc-ec-202412
    File Function: Persistent link with full text
    Download Restriction: no
    File URL: https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/economic-commentary/2024/ec-202412-neighborhood-sorting-metros-and-tomorrows-labor-force/ec202412.pdf
    File Function: Full Text
    Download Restriction: no
    File URL: https://libkey.io/10.26509/frbc-ec-202412?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dionissi Aliprantis & Francisca G.-C. Richter, 2020. "Evidence of Neighborhood Effects from Moving to Opportunity: Lates of Neighborhood Quality," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 633-647, October.
    2. Raj Chetty & Nathaniel Hendren & Maggie R Jones & Sonya R Porter, 2020. "Race and Economic Opportunity in the United States: an Intergenerational Perspective [“Intergenerational Mobility of Immigrants in the US Over Two Centuries,”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 711-783.
    3. Joseph G. Altonji & Richard K. Mansfield, 2018. "Estimating Group Effects Using Averages of Observables to Control for Sorting on Unobservables: School and Neighborhood Effects," American Economic Review, American Economic Association, vol. 108(10), pages 2902-2946, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dionissi Aliprantis & Hal Martin & Kristen Tauber, 2020. "What Determines the Success of Housing Mobility Programs?," Working Papers 20-36R, Federal Reserve Bank of Cleveland, revised 19 Oct 2022.
    2. Aliprantis, Dionissi & Carroll, Daniel R. & Young, Eric R., 2024. "What explains neighborhood sorting by income and race?," Journal of Urban Economics, Elsevier, vol. 141(C).
    3. Dionissi Aliprantis & Hal Martin, 2020. "Neighborhood Sorting Obscures Neighborhood Effects in the Opportunity Atlas," Working Papers 20-37, Federal Reserve Bank of Cleveland.
    4. Bratu, Cristina & Bolotnyy, Valentin, 2023. "Immigrant intergenerational mobility: A focus on childhood environment," European Economic Review, Elsevier, vol. 151(C).
    5. Jo Blanden & Emilia Del Bono & Kirstine Hansen & Birgitta Rabe, 2022. "Quantity and quality of childcare and children’s educational outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 785-828, April.
    6. Francesco Agostinelli & Matthias Doepke & Giuseppe Sorrenti & Fabrizio Zilibotti, 2020. "It Takes a Village: The Economics of Parenting with Neighborhood and Peer Effects," Cowles Foundation Discussion Papers 2228, Cowles Foundation for Research in Economics, Yale University.
    7. Marie Connolly & Catherine Haeck, 2024. "Intergenerational income mobility trends in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(1), pages 5-26, February.
    8. Braxton, John Carter & Chikhale, Nisha & Herkenhoff, Kyle & Phillips, Gordon, 2024. "Intergenerational Mobility and Credit," IZA Discussion Papers 16826, Institute of Labor Economics (IZA).
    9. Edward L. Glaeser, 2021. "Urban Resilience," NBER Working Papers 29261, National Bureau of Economic Research, Inc.
    10. Nathaniel Baum-Snow & Daniel Hartley & Kwan Ok Lee, 2019. "The Long-Run Effects of Neighborhood Change on Incumbent Families," Working Paper Series WP-2019-2, Federal Reserve Bank of Chicago.
    11. Marrero,Gustavo Alberto & Rodríguez,Juan Gabriel & Van Der Weide,Roy, 2021. "Does Race and Gender Inequality Impact Income Growth ?," Policy Research Working Paper Series 9865, The World Bank.
    12. Kuhn, Moritz & Bartscher, Alina & Schularick, Moritz & Wachtel, Paul, 2021. "Monetary policy and racial inequality," CEPR Discussion Papers 15734, C.E.P.R. Discussion Papers.
    13. Katie M Jajtner, 2020. "Work‐Limiting Disability and Intergenerational Economic Mobility," Social Science Quarterly, Southwestern Social Science Association, vol. 101(5), pages 2001-2016, September.
    14. Matthias Doepke & Giuseppe Sorrenti & Fabrizio Zilibotti, 2019. "The Economics of Parenting," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 55-84, August.
    15. Fe, Hao, 2023. "Social networks and consumer behavior: Evidence from Yelp," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 1-14.
    16. Christel Kesler & Amber Churchwell, 2020. "The Obama Effect on Perceived Mobility," Societies, MDPI, vol. 10(2), pages 1-16, June.
    17. Ran Abramitzky & Leah Platt Boustan & Dylan Connor, 2020. "Leaving the Enclave: Historical Evidence on Immigrant Mobility from the Industrial Removal Office," Working Papers 2020-35, Princeton University. Economics Department..
    18. Noah Hirschl & Christian Michael Smith, 2020. "Well-Placed: The Geography of Opportunity and High School Effects on College Attendance," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(5), pages 567-587, August.
    19. Guangliang Yang & Lixing Li & Shihe Fu, 2020. "Do rural migrants benefit from labor market agglomeration economies? Evidence from Chinese cities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 910-931, September.
    20. Patricia Funjika & Rachel M. Gisselquist, 2020. "Social mobility and inequality between groups," WIDER Working Paper Series wp2020-12, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:98540. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 4D Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.