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Volume 2, No. 1,
April 2003
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Revisiting
Residential Segregation by Income:
A Monte Carlo Test
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Junfu Zhang*
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Research Fellow, Public Policy Institute of California,
U.S.A.
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Abstract
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A
long-standing hypothesis states that racial housing
segregation in the U.S. results from the income
inequalities between blacks and whites. This paper
reexamines this hypothesis with a new methodology. We
present a Monte Carlo study to show that segregation
by income explains only a small proportion of the high
level of segregation.
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Key words
: residential segregation; Monte Carlo
test; dissimilarity index
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JEL classification
: C12; C15
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