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Residential Segregation, Spatial Mismatch and Economic Growth across US Metropolitan Areas

Numerous studies have demonstrated the detrimental influence of residential segregation on poor inner-city residents. This study examines the impact of residential segregation on the welfare of populations in US metropolitan areas using economic growth as the indicator. Panel data of US metropolitan areas spanning 25 years, 1980–2005, are used to analyse the effect of segregation on economic growth. The results show that both racial and skill segregation have a negative impact on short- and long-term economic growth, which have increased over time. Further, the negative impact of the variables associated with spatial mismatch is also revealed. The results clearly point to the need for mobility policies that favour non-White households and comprehensive strategies that promote economic opportunities in low-resource communities in the US.