When Are Ghettos Bad? Lessons from Immigrant Segregation in the United States / David M. Cutler, Edward L. Glaeser, Jacob L. Vigdor.

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Cutler, David M

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w13082.Publication details: Cambridge, Mass. National Bureau of Economic Research 2007.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: Recent literature on the relationship between ethnic or racial segregation and outcomes has failed to produce a consensus view of the role of ghettos; some studies suggest that residence in an enclave is beneficial, some reach the opposite conclusion, and still others imply that any relationship is small. This paper presents new evidence on this relationship using data on first-generation immigrants in the United States. Using average group characteristics as instruments for segregation, controlling for individual characteristics and both metropolitan area and country-of-origin fixed effects, we estimate impacts of residential concentration that vary with group human capital levels. Residential concentration can be beneficial, but primarily for more educated groups. The mean impact of residential concentration varies across measures, which may illuminate some of the causal mechanisms relating segregation to outcomes.

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Previous	nber w1308 Simulating Alternative Social Security Responses to the Demographic Transition /	nber w13080 Changes in Workplace Segregation in the United States between 1990 and 2000: Evidence from Matched Employer-Employee Data /	nber w13081 Markets and Housing Finance /	nber w13082 When Are Ghettos Bad? Lessons from Immigrant Segregation in the United States /	nber w13083 New Estimates of the Future Path of 401(k) Assets /	nber w13084 Takeoffs /	nber w13085 Americans Do I.T. Better: US Multinationals and the Productivity Miracle /	Next

May 2007.

Recent literature on the relationship between ethnic or racial segregation and outcomes has failed to produce a consensus view of the role of ghettos; some studies suggest that residence in an enclave is beneficial, some reach the opposite conclusion, and still others imply that any relationship is small. This paper presents new evidence on this relationship using data on first-generation immigrants in the United States. Using average group characteristics as instruments for segregation, controlling for individual characteristics and both metropolitan area and country-of-origin fixed effects, we estimate impacts of residential concentration that vary with group human capital levels. Residential concentration can be beneficial, but primarily for more educated groups. The mean impact of residential concentration varies across measures, which may illuminate some of the causal mechanisms relating segregation to outcomes.