Evaluation of Concentrated Disadvantage Index: A Latent Variable Model Approach

• In Event: 095 - Section on Community and Urban Roundtables (one-hour)
  In Refereed Roundtable: Section on Community and Urban Roundtables (one-hour). Table 01. Neighborhood Context

Abstract

Background
Concentrated disadvantage is a concept that describes the degree of neighborhood economic and social disadvantages. In recent years, sociologists explored ways in which it can be accurately measured. Concentrated disadvantage index has been used as a continuous variable. However, I argue that the relationships are not linear and that qualitatively different types of neighborhoods exist that can be classified into distinct classes.

I examined: how well existing concentrated disadvantage index correlates with underlying common factors; and latent classes of neighborhood disadvantage.

Methods
I utilized latent variable models to examine concentrated disadvantage index, using existing data collected during 2010-2011, which included 1,864 black women who resided in Chicago.

Results
Exploratory factor analysis showed that the concentrated disadvantage index, which is meant to be a one-factor measurement, had two distinct subdomains: social and economic disadvantages.

Latent class analysis using six-item disadvantage index showed that there were three distinct classes of neighborhoods: poor black, middle class black, and middle class mixed neighborhoods.

Conclusion
Scholars have argued whether middle class blacks have moved out of segregated poor black neighborhoods. Some scholars have contested that while middle class blacks may be doing better, they are not necessarily moving into middle class white areas. The results indicate that racial residential segregation may continue among middle class blacks. Disadvantage index which assumes a linear gradual difference among neighborhoods might not effectively distinguish such racial and class segregation. Alternative methods, such as measurement models, can help refine the effects of neighborhood disadvantage and spatial categorical neighborhood characteristics.

Authors

• Sage Kim, University of Illinois-Chicago

• Yamile Molina, University of Washington

• Elizabeth Calhoun, University of Arizona