A striking negative correlation exists between an area's residential racial segregation and its population characteristics, but it is recognized
that this relationship may not be causal. I present a novel test of causality from segregation to population characteristics by exploiting the arrangements of railroad tracks in the nineteenth century to isolate plausibly exogenous variation in areas' susceptibility to segregation. I show that this variation satisfies the requirements for a valid instrument. Instrumental variables estimates demonstrate that segregation increases metropolitan rates of black poverty and overall black-white income disparities, while decreasing rates of
white poverty and inequality within the white population. (JEL I32, J15, N31, N32, N91, N92, R23)
Ananat, Elizabeth Oltmans.
"The Wrong Side(s) of the Tracks: The Causal Effects of Racial Segregation on Urban Poverty and Inequality."
American Economic Journal: Applied Economics,
Measurement and Analysis of Poverty
Economics of Minorities and Races; Non-labor Discrimination
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: Pre-1913
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
Regional and Urban History: U.S.; Canada: Pre-1913
Regional and Urban History: U.S.; Canada: 1913-
Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics