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  3. American Economic Journal: Applied Economics
  4. January 2020
  5. Tipping and the Effects of Segregation

Tipping and the Effects of Segregation

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Abstract

We analyze how neighborhood ethnic population composition affects the short- and long-run education and labor market outcomes of natives and immigrants. To overcome the problem of nonrandom sorting across neighborhoods, we borrow theoretical insights from the tipping point literature and exploit estimated tipping thresholds as instruments for changes in ethnic population composition. Our results provide little evidence in support of the idea that living in a neighborhood with a higher immigrant share leads to worse outcomes.

Citation

Böhlmark, Anders, and Alexander Willén. 2020. "Tipping and the Effects of Segregation." American Economic Journal: Applied Economics, 12 (1): 318-47. DOI: 10.1257/app.20170579

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JEL Classification

  • I20 Education and Research Institutions: General
  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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