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Residential Segregation at Physical Neighborhood Boundaries

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  • Kenneth Whaley

    (University of South Florida)

Abstract

Train tracks delineate neighborhoods and serve as landmarks in the urban landscape. This paper sheds light on historic railroad placement as a predictor of contemporary segregation, using a digitized map of Texas railroads circa 1911 to compare Census block groups separated by train tracks today. Using a boundary discontinuity design, I document an unconditional house price premium of 17% to live on the high-income side of the tracks. Given that local price differences reflect the valuation of amenity differences, I show that train tracks cause race and income segregation, independent of settings where planners use them to draw administrative boundaries. In the case of schools, I find that elementary students zoned to the same school can live in remarkably different neighborhood environments.

Suggested Citation

  • Kenneth Whaley, 2024. "Residential Segregation at Physical Neighborhood Boundaries," Journal of Economics, Race, and Policy, Springer, vol. 7(3), pages 141-153, September.
    • Handle: RePEc:spr:joerap:v:7:y:2024:i:3:d:10.1007_s41996-024-00144-4
    DOI: 10.1007/s41996-024-00144-4
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    References listed on IDEAS

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    1. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June.
    2. Patrick Bayer & Marcus D. Casey & W. Ben McCartney & John Orellana-Li & Calvin S. Zhang, 2022. "Distinguishing Causes of Neighborhood Racial Change: A Nearest Neighbor Design," NBER Working Papers 30487, National Bureau of Economic Research, Inc.
    3. David E. Clark, 2006. "Externality Effects on Residential Property Values: The Example of Noise Disamenities," Growth and Change, Wiley Blackwell, vol. 37(3), pages 460-488, September.
    4. Peter Q. Blair, 2023. "Beyond Racial Attitudes: The Role of Outside Options in the Dynamics of White Flight," NBER Working Papers 31136, National Bureau of Economic Research, Inc.
    5. Eric Chyn & Kareem Haggag & Bryan A. Stuart, 2022. "The Effects of Racial Segregation on Intergenerational Mobility: Evidence from Historical Railroad Placement," NBER Working Papers 30563, National Bureau of Economic Research, Inc.
    6. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
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    Cited by:

    1. Vikram Maheshri & Kenneth Whaley, 2024. "Boundaries Generate Discontinuities in the Urban Landscape," Working Papers 2024-04, University of South Florida, Department of Economics.

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