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Tipping and the Effects of Segregation

Abstract:

Card, Mas and Rothstein (2008) show that residential segregation can arise due to white aversion toward minority neighbors: when a neighborhood’s minority share passes a certain “tipping point,” the neighborhood experiences white flight and avoidance. We show that this characterization of the dynamics of neighborhood population composition also applies to natives and immigrants in the metropolitan areas of Sweden. We add to the literature by using regression discontinuity methods and longitudinal registry data to show that tipping negatively impacts the neighborhood quality that individuals are exposed to and that it is associated with worse educational outcomes among natives. These adverse education effects are transitory in nature and do not carry over to the labor market. The results for immigrants are less precise, but not clearly different.

Anders Böhlmark Institutet för social forskning (SOFI), Universitetet i Stockholm

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