Abstract
Housing market equilibria display residential segregation when there are systematic disparities in the physical location of households belonging to different racial, ethnic, socio-economic, or other social groups. Historically, segregation has often been enforced through non-market processes such as legal restrictions. Modern segregation, by contrast, is largely driven by cross-group differences in willingness to pay for housing in group enclaves. Segregation often generates social concern, particularly when the segregated group is of low socio-economic status. Empirical studies, including a few based on randomized mobility experiments, suggest that there are negative consequences of growing up in an enclave neighbourhood.
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Vigdor, J.L. (2018). Residential Segregation. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2195
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2195
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