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Outside Options (Now) More Important than Race in Explaining Tipping Points in US Neighborhoods

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  • Peter Blair

    (Clemson University)

Abstract

I develop a revealed-preference method for estimating neighborhood tipping points. I find that census tract tipping points have increased from 15% (1970) to 42% (2010). The corresponding MSA tipping points have also increased from 13% (1970) to 35% (2010). While tipping points are traditionally associated with the racial attitudes of white households, I find that cross-sectional differences in MSA tipping points, going from 1970-2010, depend less on differences in the racial attitudes of white households and more on the outside options faced by white households. These results support a continued role for place-based policies in mitigating residential segregation.

Suggested Citation

  • Peter Blair, 2017. "Outside Options (Now) More Important than Race in Explaining Tipping Points in US Neighborhoods," Working Papers 2017-071, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2017-071
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Blair_2017_outside-options-more-important.pdf
    File Function: First version, September 24, 2017
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    References listed on IDEAS

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    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    2. Shamena Anwar & Hanming Fang, 2006. "An Alternative Test of Racial Prejudice in Motor Vehicle Searches: Theory and Evidence," American Economic Review, American Economic Association, vol. 96(1), pages 127-151, March.
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    4. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 385-409, June.
    5. Easterly William, 2009. "Empirics of Strategic Interdependence: The Case of the Racial Tipping Point," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-35, June.
    6. Caetano, Gregorio & Maheshri, Vikram, 2017. "School segregation and the identification of tipping behavior," Journal of Public Economics, Elsevier, vol. 148(C), pages 115-135.
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    Cited by:

    1. bunten, devin michelle & Fu, Ellen & Rolheiser, Lyndsey & Severen, Christopher, 2024. "The Problem Has Existed over Endless Years: Racialized Difference in Commuting, 1980–2019," Journal of Urban Economics, Elsevier, vol. 141(C).

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    More about this item

    Keywords

    preferences; race; Schelling model; tipping points; outside options;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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