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Analyzing the effects of residential segregation on socioeconomic outcomes among minorities.

Residential segregation is the spatial sorting of individuals into different neighborhoods based on differences in race, ethnicity or class. The detrimental effects of such segregation on socioeconomic outcomes experienced by minorities have been widely documented. Following Cutler and Glaeser (1997) and Flaherty (2012) I use measurements of residential segregation via dissimilarity indices to determine whether, in 2010, individuals in Metropolitan Statistical Areas with higher degrees of segregation fare better or worse with regard to income, employment, educational attainment and unmarried motherhood than those in MSAs with lower segregation. Results obtained using Probit, OLS and 2SLS regressions reaffirm the continuing and detrimental effects of segregation on minorities, as previously observed by Cutler & Glaeser and Flaherty. I find that (1) segregation could be beneficial to non-Hispanic Whites in some cases and (2) relative to Whites, non-Hispanic Blacks and Hispanics fare worse off in areas with higher segregation. Acknowledgement: I would like to express my sincere gratitude to Dr. Sean Flaherty for his advice and immense support throughout the course of this study. I would also like to thank Dr. Stephen Nicar, Dr. Stephanie Petrusz and Dr. Leanne Roncolato for their guidance.