Working Paper: NBER ID: w23822
Authors: Donald R. Davis; Jonathan I. Dingel; Joan Monras; Eduardo Morales
Abstract: We provide measures of ethnic and racial segregation in urban consumption. Using Yelp reviews, we estimate how spatial and social frictions influence restaurant visits within New York City. Transit time plays a first-order role in consumption choices, so consumption segregation partly reflects residential segregation. Social frictions also have a large impact on restaurant choices: individuals are less likely to visit venues in neighborhoods demographically different from their own. While spatial and social frictions jointly produce significant levels of consumption segregation, we find that restaurant consumption in New York City is only about half as segregated as residences. Consumption segregation owes more to social than spatial frictions.
Keywords: Segregation; Urban Consumption; Spatial Frictions; Social Frictions
JEL Codes: D12; J15; L83; R2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| social frictions (Z13) | consumption segregation (R20) |
| spatial frictions (R12) | consumption dissimilarity indices (E21) |
| demographic similarity (J11) | likelihood of visiting restaurants (L83) |
| consumers' racial group share in neighborhoods (R20) | likelihood to patronize venues (L83) |
| residential demographics (R23) | consumption choices (D10) |