International Journal of Business and Economics Volume 2, No. 1 April​, 2003

Revisiting Residential Segregation by Income: A Monte Carlo Test

Junfu Zhang

Research Fellow, Public Policy Institute of California, U.S.A.

Abstract

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.

Keywords：residential segregation, Monte Carlo test, dissimilarity index.

JEL Classifications：C12, C15.

BACK