Inequality and Segregation

@article{Sethi2004InequalityAS,
  title={Inequality and Segregation},
  author={Rajiv Sethi and Rohini Somanathan},
  journal={Journal of Political Economy},
  year={2004},
  volume={112},
  pages={1296 - 1321}
}
Despite declining group inequality and the rapid expansion of the black middle class in the United States, major urban centers with significant black populations continue to exhibit extreme racial separation. Using a theoretical framework in which individuals care about both the affluence and the racial composition of neighborhoods, we show that lower inequality is consistent with extreme and even rising levels of segregation in cities in which the minority population is large. Our results can… 
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