Panel Paper:
What Causes Unequal Neighborhoods? the Role of Rising Inequality and Economic Segregation in US Metropolitan Areas, 1970-2010
*Names in bold indicate Presenter
Consistent with past research, we find that neighborhood inequality has increased in almost all metropolitan areas. While both rising household inequality and economic segregation contribute to neighborhood inequality, we find that the economic segregation is the driving force behind the variation among metropolitan areas in neighborhood inequality and that changes in economic segregation are more important in driving the changes in inequality from one decade to the next. Thus, policies that affect economic segregation – such as reducing exclusionary zoning and improving the distribution of affordable housing – can be a powerful lever to address neighborhood inequality. Relative to income inequality, which is driven by national and international changes in returns to skill and globalization, economic segregation is more amenable to change through policy options available to state and local policymakers. We highlight specific metropolitan areas that have been more successful at controlling economic segregation, e.g. Denver and Minneapolis.