Econ113Lect7F - ECON 113: AMERICAN ECONOMIC HISTORY Lecture...

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ECON 113: AMERICAN ECONOMIC HISTORY Lecture 7
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Agenda Office hours Cutler et al. (1999) Massey and Denton (1993) Discussion of Homework #4 No class on Thursday
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Cities and Segregation What led to the rise of “ghettos” in 20 th century America? More importantly, what led to their persistence?
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Cities and Segregation Why does it matter if we have ghettos in our cities?
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Cities and Segregation How exactly do you measure segregation?
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Cutler, Glaeser, Vigdor (1999) Title: The Rise and Decline of the American Ghetto Background: There is evidence that your neighbors affect your economic and social outcomes So we must understand how neighborhoods are formed But there are no consistent measures of the extent of ghettoization in the U.S.
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Cutler, Glaeser, Vigdor (1999) The authors identify divide their analysis into three periods: The Birth of the Ghetto: 1890 – 1940 Ghetto consolidation and expansion: 1940 – 1970 Segregation falls (especially in the south and west): 1970 – 1990 The authors tell us that of the five most segregated cities in the U.S. in 1890, three are in the top 5 today.
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Cutler, Glaeser, Vidgor (1999) Theories of segregation: “Port of Entry”: Black migrants go to and stay in black areas “Collective Action Racism”: Whites use laws or violence to stay separate “Decentralized Racism”: Whites segregate themselves by paying more to live with members of their own race
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Cutler, Glaeser, Vigdor (1999) Goals of the paper: To document changes in racial segregation in the U.S. over time To discuss why the pattern of segregation developed and perpetuated itself To use data on housing costs and attitudes toward integration to differentiate among the three theories
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Cutler, Glaeser, Vigdor (1999) Findings: During the middle of the 20 th century, blacks paid relatively more for housing in segregated cities than in integrated cities, but new migrants paid no more than long-term residents collection action racism By 1990, whites pay more to live in white areas decentralized racism
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Cutler, Glaeser, Vigdor (1999) How do the authors measure segregation? Index of Dissimilarity: Shows what share of the black population would need to move in order to have races evenly distributed where black = # of blacks and nonblack = # of nonblacks in area i (as opposed to the city as a whole – denoted by total)
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Cutler, Glaeser and Vigdor (1999) We need an index of isolation that measures contact between blacks and whites “ghetto”: place with an index of dissimilarity equal to 0.6 and index of isolation equal to 0.3
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All cities: mean segregation using all cities with data that year All cities – central city only: Segregation using central-city data exclusively from 1960 onward Weighted: Weights segregation in each city by the number of blacks that year -- reflects segregation for the average black person Matched Sample: Adjusts for the changing composition of cities over time
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Econ113Lect7F - ECON 113: AMERICAN ECONOMIC HISTORY Lecture...

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