Evidence on the intergenerational persistence of residential segregation by race

Despite the substantial literature devoted to examining the causes of US Black-White residential segregation by race, there is little evidence on the persistence of residential segregation outcomes across generations. This paper examines the following two questions: Do households reside in neighbourhoods with racial compositions that resemble the household head's childhood neighbourhood? Do residential segregation outcomes persist across generations, controlling for household-level determinants of residential location choice? The empirical work relies on household-level data from the US Panel Study of Income Dynamics (PSID) matched to the racial composition of the household's census tract of residence to estimate regression models where the dependent variable is a measure of own-race residential segregation in 1980 and 1990 for each household head in the sample. The independent variables include various contemporaneous household characteristics, characteristics of each household head's parents in 1968 and the lagged 1968 neighbourhood racial composition of the household head's childhood residence. Results from several regression models suggest that households choose to reside in neighbourhoods; with racial compositions that resemble the household head's childhood neighbourhood. Observable parental characteristics, particularly measures of parental interracial contact, explain much of the intergenerational persistence in segregation among African American households. Among Whites, the intergenerational persistence of residential segregation remains even in models with an extensive set of controls. Across both racial groups, the neighbourhood social ties of parents living in more integrated neighbourhoods; are shown to reduce the propensity for children to choose segregated neighbourhoods upon reaching adulthood. These findings suggest that interracial contact may reduce the persistence of residential segregation over time.