This huge bias in the empirical research might as well be due to a more prag

This huge bias in the empirical research might as

This preview shows page 3 - 5 out of 30 pages.

This huge bias in the empirical research might as well be due to a more prag- matic reason than the development of the necessary tools. In a sense, focusing this much on the consequences of segregation is a way to answer indirectly the fun- damental question that Cutler and Glaeser[17] ask explicitly: ”Are ghettos good or bad ?”. 5 Indeed, why would we have to care about segregation if it had no effect at all? Therefore, if segregation has no impact, it is pointless to learn about the causes of the phenomenon. However, previous researchers have shown that segregation is responsible for worse outcomes for Blacks in schooling, employment, and single parenthood, among other socioeconomic outcomes. On the other hand, providing causal evidences of the sources of segregation is highly difficult because there does not exist a natural experiment that would be in- formative of all the determinants of segregation simultaneously. Thus, quantifying the relative importance of each determinant of segregation is almost impossible. 1 Vigdor[54] answers the important question ”Are the residential preferences of each racial group compatible?”. He shows that it is impossible to match the ideal Black neighborhood. Although interesting, neither he quantifies the importance of preferences in determining the levels of segregation observed, nor he provides causal evidences, and he limits his analysis to preferences only. 2 See Massey[34], Crane[16], Cutler and Glaeser[17], Katz et al.[31], Oreopoulos[42], and Krivo et al.[33] among other references. 3 See Holland[28] for a review of the earliest development of causal inference. 4 See Keels et al.[32] for the Gautreaux program and Katz et al.[31] for the MTO experiment. 5 To the best of our knowledge, only two other papers try to answer explicitly this question, Borjas[11] and Cutler et al.[19] 2
Image of page 3
In their attempt, Bayer et al.[4] lack a credible causal reasoning for their decompo- sition analysis of segregation in the San Francisco Bay Area. However, note that usually decomposition analyses do not treat the causality question and stay at a descriptive level. Thus, their analysis still provides interesting indications. Differ- ences in basic socioeconomic characteristics explains around 30% of the segregation experienced by Blacks and Whites. In this paper, we provide a general identification strategy of the causal effects of each determinant of segregation. By exploiting the dynamics of the process, we demonstrate that conditioning on all the determinants of segregation at the previous period is enough to identify causal effects, even without a natural experi- ment. Following Chernozhukov et al.[15], we further propose a detailed decompo- sition method for segregation curves applied to segregation in South Africa. 6 We use distribution regression methods to estimate counterfactual segregation curves.
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 30 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors