The Rise and Decline of the American Ghetto

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The Rise and Decline of the American Ghetto

• Written by David M. Cutler., Edward L. Glaeser.,
• and Jacob L. Vigdor
• Journal of Political Economy 107 (3) 455-506
  (1999)
•  
• Presented by I-Teng Wang

2
Introduction

• This paper examines segregation in American
  cities from 1890 to 1990. It also examines the
  birth and development of ghettos in
  twentieth-century America. The authors present
  uniform, consistent measures of segregation from
  1890 to 1990, with sample sizes ranging from 54
  cities in 1990 to 313 metropolitan statistical
  areas ( MSAs ) today

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Measuring Segregation

• N
• Index of dissimilarity ½ S ? ( black i /
  black total )
• 
  i1
• ( nonblack i / nonblack total ) ?
• N
• Index of isolation S (black i / black
  total)(black i /persons i )-(black total/
  persons total ) i1
• min ( black total / persons i , 1 ) ( black
  total / persons total )

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The History of Segregation

• 1890 1940 The birth of the ghetto,
  accompanied by and perhaps due to the first
  large-scale black migration from the rural South
  to the urban North.
• 1940 1970 Ghettos consolidated and expanded.
  The peak period for segregation in the United
  States was 1970.
• 1970 1990 Segregation fell throughout the
  country, particularly in the rapidly growing
  cities of the South and West.

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Theories about Segregation

• Port of Entry Theory
• Centralized ( Collective Action Racism ) Theory
• Decentralized Racism Theory

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Predictions of Alternative Theories
Theory
Collective Action Racism
Decentralized Racism
Relation between Segregation and
Port of Entry
Blacks pay more, esp. migrants.
Blacks pay more.
Whites pay more.
House Prices
Attitudes Toward Integration.
Blacks prefer segregation, esp. migrants.
Whites prefer segregation.
Whites prefer segregation.
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Test

• Ln (housing cost) a b1 (structural
  controls)
• b2 (tract controls) b3 black
• b4 (pct. black in tract) e.
• Coefficient b4 tests the hypothesis.

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Evidence on Housing Costs

• Mid-century Greater segregation levels
  resulted from collective actions on the parts of
  Whites to exclude blacks.
• Over next 30, and particularly 50, years,
  collective action became less important.
• By 1990, differences in residential location
  between blacks and whites occur because whites
  desire to live in W neighborhoods exceeds blacks
  desires to live in those neighborhoods.

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Segregation across Cities

• There is clear evidence that larger or denser
  cities have higher levels segregation. In 1910,
  dissimilarity is related to city density,
  although isolation is not. In 1940, 1970, and
  1990, both measures of segregation are strongly
  related to population. The coefficients are
  roughly the same for all three years. Over time,
  there are clear regional effects in segregation,
  but they are not apparent prior to 1970.

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Case Studies

• Cleveland In 1990, the dissimilarity index was
  0.66, the isolation index was 0.08, and only 2
  was black share of population. Between 1910 and
  1940, black population grew by nearly 8
  annually. Also, its dissimilarity index was 0.84
  and isolation index was 0.63 then. The
  dissimilarity index increased from 0.84 to 0.87
  and the isolation index rose from 0.63 to 0.72.
  Since 1970, segregation has fallen.
• Atlanta In 1940, Atlanta was the most
  segregated of 16 southern cities according to
  both the dissimilarity and isolation indices.
  Between 1970 and 1990, the share of blacks living
  in the suburbs of Atlanta increased from 36 to 56
  percent, and suburbs are much more integrated
  than the city.
• Sacramento In 1950, Sacramentos black
  population was spread unequally. The
  dissimilarity index was 0.56 and the isolation
  index was 0.11 then. Between 1950 and 1970, both
  dissimilarity and isolation indices rose by 0.1.
  The share of blacks rose from 5 to 7 between
  1970 and 1990.

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Lessons from the Case Studies

• In Cleveland, segregation was driven by the
  growth of the black population, both because some
  blacks desired segregated areas and also because
  black in-migration sparked racial hatred among
  whites. Collective action racism played a
  substantial role in the formation of the ghetto
  in Atlanta. Segregation remains high in many
  cities, but in areas with more rapid population
  change, such as Sacramento, patterns of stable
  integration are developing.

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Conclusion

• The level of segregation in urban America rose
  for nearly a century and then modestly declined.
• Despite these large changes in segregation over
  time, segregation across cities is very
  persistent and is strongly related to city size.