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Residential Mobility, Neighborhood Effects, and Educational Attainment of Blacks and Whites

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  • Yan Dong
  • Li Gan
  • Yingning Wang

Abstract

This paper proposes a new model to identify if and how much the educational attainment gap between blacks and whites is due to the difference in their neighborhoods. In this model, individuals belong to two unobserved types: the endogenous type, which may move in response to the neighborhood effect on their education; or the exogenous type, which may move for reasons unrelated to education. The Heckman sample selection model becomes a special case of the current model in which the probability of one type of individuals is zero. Although we cannot find any significant neighborhood effect in the usual Heckman sample selection model, we do find heterogeneous effects in our two-type model. In particular, there is a substantial neighborhood effect for the movers who belong to the endogenous type. No significant effects exist for other groups. We also find that the endogenous type has more education and moves more often than the exogenous type. On average, we find that the neighborhood variable, the percentage of high school graduates in the neighborhood, accounts for about 28.96% of the education gap between blacks and whites.

Suggested Citation

  • Yan Dong & Li Gan & Yingning Wang, 2015. "Residential Mobility, Neighborhood Effects, and Educational Attainment of Blacks and Whites," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 763-798, December.
  • Handle: RePEc:taf:emetrv:v:34:y:2015:i:6-10:p:763-798
    DOI: 10.1080/07474938.2014.956586
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    References listed on IDEAS

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    1. Justine S. Hastings & Thomas J. Kane & Douglas O. Staiger, 2006. "Preferences and Heterogeneous Treatment Effects in a Public School Choice Lottery," NBER Working Papers 12145, National Bureau of Economic Research, Inc.
    2. Elizabeth Oltmans Ananat, 2007. "The Wrong Side(s) of the Tracks Estimating the Causal Effects of Racial Segregation on City Outcomes," NBER Working Papers 13343, National Bureau of Economic Research, Inc.
    3. Maria Hanratty & Sara McLanahan & Becky Pettit, 1998. "The Impact Of The Los Angeles Moving Opportunity Program On Residential Mobility, Neighborhood Characteristics, And Early Child And Parent Outcomes," Working Papers 990, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
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    Cited by:

    1. Li Gan & Manuel A. Hernandez & Yanyan Liu, 2018. "Group Lending With Heterogeneous Types," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 895-913, April.

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