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Wealth, Race, and Inter-Neighborhood Migration

Wealth, Race, and Inter-Neighborhood Migration. American Sociological Review, Vol. 71: pp. 72–94. Kyle Crowder Western Washington University Scott South University at Albany – SUNY Erick Chavez University at Albany - SUNY. Background: Efforts to explain residential segregation by race.

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Wealth, Race, and Inter-Neighborhood Migration

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  1. Wealth, Race, and Inter-Neighborhood Migration American Sociological Review, Vol. 71: pp. 72–94 Kyle Crowder Western Washington University Scott South University at Albany – SUNY Erick Chavez University at Albany - SUNY

  2. Background:Efforts to explain residential segregation by race • Segregation defined by racial differences in residential location and maintained by differential mobility patterns • Competing theoretical arguments to explain racial differences in residential outcomes • residential preferences • discrimination • Stratification perspective • socioeconomic resources • Assimilation perspective

  3. Background:Efforts to explain residential segregation by race • Limited support for assimilation perspective • socioeconomic conditions account for small part of racial differences in neighborhood location • But past tests are incomplete • role of wealth largely ignored in studies of residential mobility and attainment • Potential importance of wealth • Wealth potentially key in determining access to higher status, whiter neighborhoods • Pronounced racial differences in levels of wealth

  4. Key questions • To what extent can differences in the types of neighborhoods to which black and white householders move be explained by racial differences in household and parental wealth? • Are there racial differences in the residential returns to wealth? • “strong version” and “weak version” of the stratification perspective

  5. Data and Methods • Panel Study of Income Dynamics • Interview years 1989 to 2001 • Heads of households only • Black and White householders only • Assess two-stage mobility process • Likelihood of moving out of the neighborhood of residence • Racial composition of the neighborhood of destination • Heckman models to account for selectivity of mobility

  6. What makes the PSID so well suited for this type of analysis? • Longitudinal • Trace mobility processes prospectively • Examine multiple moves by the same householders

  7. What makes the PSID so well suited for this type of analysis? • Longitudinal • Range of mobility predictors • age, gender, family composition, crowding, tenure, etc.

  8. What makes the PSID so well suited for this type of analysis? • Longitudinal • Range of mobility predictors • Wealth data • Levels and sources of wealth for respondents’ household in 1984, 1989, 1994, 1999, 2001, (2003, 2005) • Estimated parental wealth of household head and “wife” in 1988

  9. What makes the PSID so well suited for this type of analysis? • Longitudinal • Range of mobility predictors • Wealth data • Geocode match files • Track moves between neighborhoods (tracts) from one interview to another • Merge to contextual data • 1980, 1990, 2000 Census data from Neighborhood Change Database • (Links to other sources also possible)

  10. Note: Calculations based on race- and ownership-specific means for all variables.

  11. Note: Calculations based on race- and ownership-specific means for all variables.

  12. Summary of key results • Sharp racial differences in household and parental wealth • Wealth is positively associated with moving to neighborhoods with larger shares of non-Latino whites, but this effect is larger, and only significant for, black households • But differences in household and parental wealth account for little of the racial difference in residential destinations

  13. Theoretical implications • Must move beyond socioeconomic characteristics to explain racially stratified migration outcomes • Assimilation model cannot explain observed dynamics • Some other alternatives: • Racial differences in residential preferences • Discrimination • Supported by finding of racial differences in the effects of wealth • Racial differences in housing search process

  14. Conclusion • Flexibility of unique PSID data structure • Other research with the PSID • Local and extralocal neighborhood influences on residential choices • Metropolitan-level constraints and opportunities for mobility • Racial differences in wealth accumulation and the transition to home ownership • Individual-level processes of environmental inequality • Multi-level influences on adolescent development

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