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This study examines the effects of racial neighborhood inequality and residential segregation on neighborhood crime rates over time. Using data from the National Neighborhood Crime Study and the Racial Neighborhood Inequality Study, which provide census tract-level information for the years 2000–2010, this research investigates how inequality at the neighborhood level and segregation at the city level influence changes in crime rates. The analysis uses a multilevel model to account for the nested data structure, with city-level segregation and tract-level inequality as predictors, and neighborhood crime rates as the outcome. The model controls for unobserved city-level heterogeneity using city-level fixed effects while allowing for the examination of neighborhood-specific effects. Baseline models include initial levels of neighborhood inequality and crime, while full models examine how changes in neighborhood inequality and segregation are associated with changes in crime rates. By disentangling the effects of segregation and inequality, the study assesses how city-wide segregation influences crime even after accounting for neighborhood-level inequality, and vice versa. Understanding how structural factors independently and jointly shape crime dynamics is critical for informing effective policy. This study offers valuable insights for policymakers and practitioners seeking to reduce racial and economic disparities and promote more equitable life outcomes.