Working Paper: NBER ID: w30563
Authors: Eric Chyn; Kareem Haggag; Bryan A. Stuart
Abstract: This paper provides new evidence on the causal impacts of city-wide racial segregation on intergenerational mobility. We use an instrumental variable approach that relies on plausibly exogenous variation in segregation due to the arrangement of railroad tracks in the nineteenth century. Our analysis finds that higher segregation reduces upward mobility for Black children from households across the income distribution and White children from low-income households. Moreover, segregation lowers academic achievement while increasing incarceration and teenage birth rates. An analysis of mechanisms shows that segregation reduces government spending, weakens support for anti-poverty policies, and increases racially conservative attitudes for White residents.
Keywords: Racial Segregation; Intergenerational Mobility; Instrumental Variables; Railroad Placement; Public Goods
JEL Codes: D63; H0; J0; R0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| higher racial segregation (J15) | decrease in upward mobility for black children (J62) |
| higher racial segregation (J15) | decrease in academic achievement (I24) |
| higher racial segregation (J15) | increase in incarceration rates (K14) |
| higher racial segregation (J15) | increase in teenage birth rates (J13) |
| higher racial segregation (J15) | reduce government spending (H56) |
| higher racial segregation (J15) | weaken support for antipoverty policies (H53) |
| higher racial segregation (J15) | decline in mobility (J62) |