Working Paper: NBER ID: w30487
Authors: Patrick Bayer; Marcus D. Casey; W. Ben McCartney; John Orellana; Calvin S. Zhang
Abstract: We study neighborhood choice using a novel research design that contrasts the move rate of homeowners who receive a new different-race neighbor immediately next-door versus slightly further away on the same block. This approach isolates a component of household preferences directly attributable to their neighbors’ identities. Both Black and White homeowners are more likely to move after receiving a new different-race neighbor. Results are robust to additional controls (e.g., income) and alternative research designs. We find evidence of heterogeneity in responses associated with income, density, and region, which has implications for understanding contemporary neighborhood racial change and the prospects for maintaining stable, integrated neighborhoods.
Keywords: No keywords provided
JEL Codes: J15; R23; R31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Receiving a new neighbor of a different race (R23) | Homeowner move propensity (R21) |
| Receiving a new white neighbor (R23) | Move propensity of black homeowners (R21) |
| Receiving a new black neighbor (R23) | Move propensity of white homeowners (R21) |