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Identifying Long-Run Neighborhood Effects via Race-Based Neighborhood Sorting

Author

Listed:
  • Dionissi Aliprantis

    (CERGIC - Center for Economic Research on Governance, Inequality and Conflict - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon)

  • Daniel Hartley

    (Federal Reserve Bank of Chicago)

  • Chris Muris

    (McMaster University [Hamilton, Ontario])

Abstract

Children's adult outcomes are influenced by both their parents' socioeconomic status (SES) and the SES of the neighborhood where they grew up. We explicitly distinguish between these factors to identify long-run neighborhood effects. We estimate an ordered probit model of neighborhood choice and use it to infer how population shares of parental SES in each neighborhood vary along both observed and unobserved dimensions. We then regress the average observed outcomes in neighborhoods on these population shares to identify potential outcomes. Using racebased neighborhood sorting as an instrument, we estimate that about half of recent racial inequality in intergenerational mobility is explained by residential segregation.

Suggested Citation

  • Dionissi Aliprantis & Daniel Hartley & Chris Muris, 2025. "Identifying Long-Run Neighborhood Effects via Race-Based Neighborhood Sorting," Working Papers hal-04973503, HAL.
    • Handle: RePEc:hal:wpaper:hal-04973503
    Note: View the original document on HAL open archive server: https://hal.science/hal-04973503v1
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    File URL: https://hal.science/hal-04973503v1/document
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