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Income Inequality and Residential Segregation by Income: Heterogeneous effects by residential mobility patterns
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Income inequality and income segregation have increased in Sweden in recent decades. This paper estimates the average effect of within-municipality change in income inequality on residential segregation by income using Swedish data from year 2000 - 2014. In addition, the paper examines the heterogeneous effects arising from residential mobility patterns. Income inequality is measured by the share of rich and the share of poor individuals in a municipality. Segregation is measured as the segregation of affluence and segregation of poverty using the Dissimilarity Index. With the starting point in a Tiebout (1956) choice model, an increase in income inequality is expected to lead to an increase in segregation. Using a First Difference model, the main result of the paper is that an increase in the share of rich individuals in a municipality is negatively associated with segregation of affluence. A change in the share of poor individuals in a municipality is not statistically significantly associated with a change in segregation of affluence or poverty. These effects are driven mainly by movers from within neighborhood, immigrants, and to some extent by movers from other municipalities. 

Place, publisher, year, edition, pages
2018.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-355281OAI: oai:DiVA.org:uu-355281DiVA, id: diva2:1228282
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Available from: 2018-06-29 Created: 2018-06-27 Last updated: 2018-07-02Bibliographically approved

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