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East-Side Story: Historical Pollution and Persistent Neighborhood Sorting

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  • Stephan Heblich
  • Alex Trew
  • Yanos Zylberberg

Abstract

Why are the east sides of formerly industrial cities more deprived? To answer this question, we use individual-level census data and create historical pollution patterns derived from the locations of 5,000 industrial chimneys and an atmospheric model. We show that this observation results from path-dependent neighborhood sorting that began during the Industrial Revolution, as prevailing winds blew pollution eastward. Past pollution explains up to 20% of observed neighborhood segregation in 2011, even though coal pollution stopped in the 1970s. We develop a quantitative model to identify the role of neighborhood effects and relocation rigidities underlying this persistence.

Suggested Citation

  • Stephan Heblich & Alex Trew & Yanos Zylberberg, 2021. "East-Side Story: Historical Pollution and Persistent Neighborhood Sorting," Journal of Political Economy, University of Chicago Press, vol. 129(5), pages 1508-1552.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/713101
    DOI: 10.1086/713101
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    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative

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