Income segregation: Difference between revisions
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{{Unreferenced|date=December 2007}} '''Income segregation''' is the separation of various peoples by [[Social class|class]] based on [[income]]. For example, certain people cannot get into [[country club]]s because of [[insufficient funds]]. Many [[Residential segregation|residential areas are segregated]] as a practical matter by income due to [[exclusionary zoning]], which may require limit dwellings to detached single family homes (and not allow apartments) and require minimum lot sizes and minimum square footage for the house (these requirements effectively prevent [[tiny homes]] and [[Duplex (building)|duplex]]es). |
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'''Income segregation''' is separation of various classes of people based on their income. For example, certain people cannot get into country clubs because of insufficient funds. It may further also be characterized by the spatial segregation of poverty (the extent to which the lowest-income households are isolated from middle- and upper-income households) and/or the spatial segregation of affluence (the extent to which the highest-income households are isolated from middle- and lower-income households). |
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Income [[segregation]] might affect individual outcomes. The quality of public goods and local social institutions are affected by a jurisdiction’s tax base and by the involvement of the community in the maintenance and investment of these public resources. If high-income households cluster together within a small number of neighborhoods or municipalities, they may be able to collectively better their own outcomes by pooling their extensive financial and social capital to generate resources of which only they can take advantage. For that reason, income segregation can sometime be beneficial for these communities. High-income areas and its residents have higher possibility to obtain the high-quality public service at a lowest cost. These areas might then have better social and educational possibilities or dispose more eco-friendly environment.<ref name=":0">{{Cite journal|last=Reardon|first=Sean F.|date=July 2010|title=Income Inequality and Income Segregation|url=https://cepa.stanford.edu/sites/default/files/reardon%20%26%20bischoff%20income%20inequality%20segregation%20AJS%20final.pdf|journal=American Journal of Sociology}}</ref> |
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Income segregation is associated with grater inequality in education attainment between the classes.<ref name=":0" /> |
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Income segregation is highly correlated with income inequality, racial segregation and segregation of poverty and affluence. Also, the correlation of the income segregation between schools has been documented and an increasing trend occurred with little or no exception.<ref name=":0" /> |
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Metropolitan income segregation in the US grew constantly between the years 1970 to 2000, the fastest in the 1980s. The growth was stronger for the black families than for the white ones as well as the covariance of income inequality and the segregation of poverty and affluence.<ref name=":1">{{Cite journal|last=Reardon|first=Sean F.|last2=Bischoff|first2=Kendra|last3=Owens|first3=Ann|last4=Townsend|first4=Joseph B.|date=2018-12-01|title=Has Income Segregation Really Increased? Bias and Bias Correction in Sample-Based Segregation Estimates|url=https://doi.org/10.1007/s13524-018-0721-4|journal=Demography|language=en|volume=55|issue=6|pages=2129–2160|doi=10.1007/s13524-018-0721-4|issn=1533-7790}}</ref><ref name=":0" /> |
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== Income segregation in context == |
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=== '''Income segregation and income inequality''' === |
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[[Economic inequality|Income inequality]] is a necessary condition for income segregation. If there were no income inequality, the neighborhoods would posses the same opportunities and conditions and thus no income segregation would probably occur. |
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Based on research, income inequality itself does not create income segregation – the presence of income-correlated residential preferences, and income-based [[Real estate economics|housing market]] and/or housing policies is crucial indeed.<ref name=":0" /> |
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An increase in inequality in the US from 1970-1990 resulted in an increase in income segregation. Also, an increase in income segregation in economic school segregation is highly dependent on income inequality (also on the changes in the education policies played role). <ref name=":1" /><ref name=":0" /> |
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=== '''Income inequality and the Segregation of Poverty and Affluence''' === |
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Income inequality affects income segregation. Among low-income households the difference between incomes do not significantly vary. Thus, [[Income inequality in the United States|income inequality]] is generally stronger among high-income households – i.e., '''upper- tail income inequality'''. In other words, there is little or no significant impact of the income inequality on income segregation among low-income households. It means that for moderate or high-income households it is more probable that they would not be able to afford to live in the same neighborhood (on the contrary to low-income households). Thus upper-tail income inequality leads to greater segregation of [[Wealth|affluence]] and not necessarily to greater segregation of poverty.<ref name=":0" /> |
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=== '''Racial differences and income segregation''' === |
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Metropolitan income segregation also differs among [[Race (human categorization)|races]] given by the [[racial discrimination]] in history, when fewer residential options were available for black households in comparison to the white household of the same income level and wealth, then the expansion in housing options in the late 20<sup>th</sup> century occurred. This resulted that the income inequality has a stronger correlation with income segregation among black families than among white families during this period, e. g. between the years 1970s and 1980s in the US, studies show that income segregation among black families grew more than three times faster than among white families.<ref name=":0" /> |
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== Measurement of the income segregation == |
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There are multiple options of measuring income segregation even though they are much less developed and each of them include some advantages as well as disadvantages. Many studies use '''[[dissimilarity index]]''' (unlike when measuring racial segregation) – whose possible disadvantage is the substantial loss of information. The variation of the dissimilarity index is the '''overall economic segregation index (OESI).''' This index is based on the seven variables based on the income, educational and occupational measures and out of these measures the overall economic segregation is calculated. Another possibility for measuring income segregation is the use of a ratio of the between-neighborhood variation in mean income to the total variation of income, one of the variation of this approach is an '''CGI - centile gap index''' (segregation is equal to one minus the ratio of the within-neighborhood variation in income percentile rank to the overall variation in percentile rank), '''Bourguignon’s income inequality index''' or '''Jargowsky’s Neighborhoods Sorting Index (NSI)''' – i.e. to the square root of the ratio of the between-unit income variance to the total income variance.<ref name=":2">{{Cite journal|last=Reardon|first=Sean F.|date=Revised September 2011|title=Measures of Income Segregation|url=https://inequality.stanford.edu/sites/default/files/reardon_measures-income-seg.pdf|journal=Stanford University}}</ref><ref name=":0" /> |
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'''Rank-order theory index (H<sup>R</sup>)''' equals to the ratio of within-unit income rank variation to overall income rank variation. This approach allows to measure this type of segregation even if the precise threshold of the income is unknow and we choose only based on the percentiles.<ref name=":0" /> |
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'''RISI – Residential Income Segregation Index''' is one of the more precise measuring methods for summarizing the income segregation. As the name indicates, it focuses on the income segregation given by the residential possibilities.<ref name=":3">{{Cite journal|last=Bischoff|first=Kendra|date=October 16, 2013|title=Residential Segregation by Income, 1970-2009|url=https://s4.ad.brown.edu/Projects/Diversity/Data/Report/report10162013.pdf|journal=Cornell University}}</ref> |
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Some of these approaches require the measurement of income inequality first for which the '''[[Gini coefficient|Gini index]] (Gini coefficient)''' is most widely use. If the value of the index is equal 0, perfect equality occurs. On the contrary, when the value if the index is equal to 1, perfect inequality is observed within the society.<ref name=":2" /> |
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== Why is the income segregation important to observe == |
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Income segregation is an important characteristic of the community indicating possible differences among the households of different level of income. High-income classes usually possess more cultural, educational, and political benefits. Thus, a child born in a low-income family is probable to make less than the one born in high-income household.<ref name=":4">{{Cite web|last=Munson|first=Lucas|date=2017-10-10|title=What is economic segregation, and why does it matter?|url=https://www.folomedia.org/economic-segregation-matter/|access-date=2021-04-17|website=Folo Media|language=en-US}}</ref> |
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Some proposals have been made to help to reduce the income segregation, such as the integration of disadvantaged families into the mixed-income communities. This could to some way, according to the experts, help to reduce the poverty across the generations in these disadvantaged households.<ref name=":4" /><ref name=":5">{{Cite journal|last=Owens|first=Ann|last2=Reardon|first2=Sean F.|last3=Jencks|first3=Christopher|date=2016-08-01|title=Income Segregation Between Schools and School Districts|url=https://doi.org/10.3102/0002831216652722|journal=American Educational Research Journal|language=en|volume=53|issue=4|pages=1159–1197|doi=10.3102/0002831216652722|issn=0002-8312}}</ref> |
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==References== |
==References== |
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<ref name=":4" />Munson, Lucas (2017-10-10). "What is economic segregation, and why does it matter?". ''Folo Media''. Retrieved 2021-04-17. |
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<ref>{{Cite web|last=NW|first=1615 L. St|last2=Suite 800Washington|last3=Inquiries|first3=DC 20036USA202-419-4300 {{!}} Main202-857-8562 {{!}} Fax202-419-4372 {{!}} Media|date=2012-08-01|title=The Rise of Residential Segregation by Income|url=https://www.pewresearch.org/social-trends/2012/08/01/the-rise-of-residential-segregation-by-income/|access-date=2021-04-17|website=Pew Research Center’s Social & Demographic Trends Project|language=en-US}}</ref>NW, 1615 L. St; Suite 800Washington; Inquiries, DC 20036USA202-419-4300 | Main202-857-8562 | Fax202-419-4372 | Media (2012-08-01). "The Rise of Residential Segregation by Income". ''Pew Research Center’s Social & Demographic Trends Project''. Retrieved 2021-04-17. |
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<ref name=":5" />Owens, Ann; Reardon, Sean F.; Jencks, Christopher (2016-08-01). "Income Segregation Between Schools and School Districts". ''American Educational Research Journal''. '''53''' (4): 1159–1197. [[Doi (identifier)|doi]]:10.3102/0002831216652722. [[ISSN (identifier)|ISSN]] 0002-8312. |
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<ref name=":1" />Reardon, Sean F.; Bischoff, Kendra; Owens, Ann; Townsend, Joseph B. (2018-12-01). "Has Income Segregation Really Increased? Bias and Bias Correction in Sample-Based Segregation Estimates". ''Demography''. '''55''' (6): 2129–2160. [[Doi (identifier)|doi]]:10.1007/s13524-018-0721-4. [[ISSN (identifier)|ISSN]] 1533-7790. |
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<ref name=":3" />Bischoff, Kendra (October 16, 2013). "Residential Segregation by Income, 1970-2009" (PDF). ''Cornell University''. |
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<ref name=":0" />Reardon, Sean F. (July 2010). "Income Inequality and Income Segregation" (PDF). ''American Journal of Sociology''. |
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<ref name=":2" />Reardon, Sean F. (Revised September 2011). "Measures of Income Segregation" (PDF). ''Stanford University''. |
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{{reflist}} |
{{reflist}} |
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Revision as of 20:34, 17 April 2021
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Income segregation is separation of various classes of people based on their income. For example, certain people cannot get into country clubs because of insufficient funds. It may further also be characterized by the spatial segregation of poverty (the extent to which the lowest-income households are isolated from middle- and upper-income households) and/or the spatial segregation of affluence (the extent to which the highest-income households are isolated from middle- and lower-income households).
Income segregation might affect individual outcomes. The quality of public goods and local social institutions are affected by a jurisdiction’s tax base and by the involvement of the community in the maintenance and investment of these public resources. If high-income households cluster together within a small number of neighborhoods or municipalities, they may be able to collectively better their own outcomes by pooling their extensive financial and social capital to generate resources of which only they can take advantage. For that reason, income segregation can sometime be beneficial for these communities. High-income areas and its residents have higher possibility to obtain the high-quality public service at a lowest cost. These areas might then have better social and educational possibilities or dispose more eco-friendly environment.[1]
Income segregation is associated with grater inequality in education attainment between the classes.[1]
Income segregation is highly correlated with income inequality, racial segregation and segregation of poverty and affluence. Also, the correlation of the income segregation between schools has been documented and an increasing trend occurred with little or no exception.[1]
Metropolitan income segregation in the US grew constantly between the years 1970 to 2000, the fastest in the 1980s. The growth was stronger for the black families than for the white ones as well as the covariance of income inequality and the segregation of poverty and affluence.[2][1]
Income segregation in context
Income segregation and income inequality
Income inequality is a necessary condition for income segregation. If there were no income inequality, the neighborhoods would posses the same opportunities and conditions and thus no income segregation would probably occur.
Based on research, income inequality itself does not create income segregation – the presence of income-correlated residential preferences, and income-based housing market and/or housing policies is crucial indeed.[1]
An increase in inequality in the US from 1970-1990 resulted in an increase in income segregation. Also, an increase in income segregation in economic school segregation is highly dependent on income inequality (also on the changes in the education policies played role). [2][1]
Income inequality and the Segregation of Poverty and Affluence
Income inequality affects income segregation. Among low-income households the difference between incomes do not significantly vary. Thus, income inequality is generally stronger among high-income households – i.e., upper- tail income inequality. In other words, there is little or no significant impact of the income inequality on income segregation among low-income households. It means that for moderate or high-income households it is more probable that they would not be able to afford to live in the same neighborhood (on the contrary to low-income households). Thus upper-tail income inequality leads to greater segregation of affluence and not necessarily to greater segregation of poverty.[1]
Racial differences and income segregation
Metropolitan income segregation also differs among races given by the racial discrimination in history, when fewer residential options were available for black households in comparison to the white household of the same income level and wealth, then the expansion in housing options in the late 20th century occurred. This resulted that the income inequality has a stronger correlation with income segregation among black families than among white families during this period, e. g. between the years 1970s and 1980s in the US, studies show that income segregation among black families grew more than three times faster than among white families.[1]
Measurement of the income segregation
There are multiple options of measuring income segregation even though they are much less developed and each of them include some advantages as well as disadvantages. Many studies use dissimilarity index (unlike when measuring racial segregation) – whose possible disadvantage is the substantial loss of information. The variation of the dissimilarity index is the overall economic segregation index (OESI). This index is based on the seven variables based on the income, educational and occupational measures and out of these measures the overall economic segregation is calculated. Another possibility for measuring income segregation is the use of a ratio of the between-neighborhood variation in mean income to the total variation of income, one of the variation of this approach is an CGI - centile gap index (segregation is equal to one minus the ratio of the within-neighborhood variation in income percentile rank to the overall variation in percentile rank), Bourguignon’s income inequality index or Jargowsky’s Neighborhoods Sorting Index (NSI) – i.e. to the square root of the ratio of the between-unit income variance to the total income variance.[3][1]
Rank-order theory index (HR) equals to the ratio of within-unit income rank variation to overall income rank variation. This approach allows to measure this type of segregation even if the precise threshold of the income is unknow and we choose only based on the percentiles.[1]
RISI – Residential Income Segregation Index is one of the more precise measuring methods for summarizing the income segregation. As the name indicates, it focuses on the income segregation given by the residential possibilities.[4]
Some of these approaches require the measurement of income inequality first for which the Gini index (Gini coefficient) is most widely use. If the value of the index is equal 0, perfect equality occurs. On the contrary, when the value if the index is equal to 1, perfect inequality is observed within the society.[3]
Why is the income segregation important to observe
Income segregation is an important characteristic of the community indicating possible differences among the households of different level of income. High-income classes usually possess more cultural, educational, and political benefits. Thus, a child born in a low-income family is probable to make less than the one born in high-income household.[5]
Some proposals have been made to help to reduce the income segregation, such as the integration of disadvantaged families into the mixed-income communities. This could to some way, according to the experts, help to reduce the poverty across the generations in these disadvantaged households.[5][6]
References
[5]Munson, Lucas (2017-10-10). "What is economic segregation, and why does it matter?". Folo Media. Retrieved 2021-04-17.
[7]NW, 1615 L. St; Suite 800Washington; Inquiries, DC 20036USA202-419-4300 | Main202-857-8562 | Fax202-419-4372 | Media (2012-08-01). "The Rise of Residential Segregation by Income". Pew Research Center’s Social & Demographic Trends Project. Retrieved 2021-04-17.
[6]Owens, Ann; Reardon, Sean F.; Jencks, Christopher (2016-08-01). "Income Segregation Between Schools and School Districts". American Educational Research Journal. 53 (4): 1159–1197. doi:10.3102/0002831216652722. ISSN 0002-8312.
[2]Reardon, Sean F.; Bischoff, Kendra; Owens, Ann; Townsend, Joseph B. (2018-12-01). "Has Income Segregation Really Increased? Bias and Bias Correction in Sample-Based Segregation Estimates". Demography. 55 (6): 2129–2160. doi:10.1007/s13524-018-0721-4. ISSN 1533-7790.
[4]Bischoff, Kendra (October 16, 2013). "Residential Segregation by Income, 1970-2009" (PDF). Cornell University.
[1]Reardon, Sean F. (July 2010). "Income Inequality and Income Segregation" (PDF). American Journal of Sociology.
[3]Reardon, Sean F. (Revised September 2011). "Measures of Income Segregation" (PDF). Stanford University.
- ^ a b c d e f g h i j k Reardon, Sean F. (July 2010). "Income Inequality and Income Segregation" (PDF). American Journal of Sociology.
- ^ a b c Reardon, Sean F.; Bischoff, Kendra; Owens, Ann; Townsend, Joseph B. (2018-12-01). "Has Income Segregation Really Increased? Bias and Bias Correction in Sample-Based Segregation Estimates". Demography. 55 (6): 2129–2160. doi:10.1007/s13524-018-0721-4. ISSN 1533-7790.
- ^ a b c Reardon, Sean F. (Revised September 2011). "Measures of Income Segregation" (PDF). Stanford University.
{{cite journal}}: Check date values in:|date=(help) - ^ a b Bischoff, Kendra (October 16, 2013). "Residential Segregation by Income, 1970-2009" (PDF). Cornell University.
- ^ a b c Munson, Lucas (2017-10-10). "What is economic segregation, and why does it matter?". Folo Media. Retrieved 2021-04-17.
- ^ a b Owens, Ann; Reardon, Sean F.; Jencks, Christopher (2016-08-01). "Income Segregation Between Schools and School Districts". American Educational Research Journal. 53 (4): 1159–1197. doi:10.3102/0002831216652722. ISSN 0002-8312.
- ^ NW, 1615 L. St; Suite 800Washington; Inquiries, DC 20036USA202-419-4300 | Main202-857-8562 | Fax202-419-4372 | Media (2012-08-01). "The Rise of Residential Segregation by Income". Pew Research Center’s Social & Demographic Trends Project. Retrieved 2021-04-17.
{{cite web}}: CS1 maint: numeric names: authors list (link)
See also
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