Cross-municipal segregation as a mechanism of racial inequality

• In Event: 40252 - Mechanisms of Segregation

Abstract

Residential segregation is a central pillar of Black-white racial stratification in the United States. When segregation occurs across municipal boundaries, and not just neighborhoods within the same municipality, it can result in racial disparities in local government fiscal capacity--providing a financial incentive for wealthier white residents to maintain segregation. This paper uses CoreLogic assessment records for more than 140 million properties to calculate the magnitude of racial fiscal disparities in US metros. It shows that in many Northeastern and Midwestern metros, cross-municipality racial segregation results in Black residents living in municipalities with roughly half the per capita tax base as the municipalities where white residents live. This means that Black residents pay higher property tax rates, but receive lower levels of government services, than white residents of the same metropolitan area.

Author

• Robert Allen Manduca, University of Michigan-Ann Arbor