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How much does income matter in neighborhood choice?

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Abstract

There is a substantial literature on the residential mobility process itself and a smaller contribution on how households make neighborhood choices, especially with respect to racial composition. We extend that literature by evaluating the role of income and socioeconomic status in the neighborhood choice process for minorities. We use individual household data from the Los Angeles Family and Neighborhood Study to investigate the comparative choices of white and Hispanic households in the Los Angeles metropolitan area. We show that income and education are important explanations for the likelihood of choosing neighborhoods. But at the same time, own race preferences clearly play a role. While whites with more income choose more white neighborhoods, Hispanics with more income choose less Hispanic neighborhoods. One interpretation is that both groups are translating resources, such as income and education, into residence in whiter and ostensibly, higher status neighborhoods.

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Notes

  1. Thirty-six percent of Los Angeles County population is foreign-born (Census 2000) and 70% of this population arrived in the last two decades.

  2. We do not adjust the sample for the clustering and stratification for the descriptive analysis as the proportions would not be affected. We do correct for stratification and clustering in the model estimates.

  3. This is not to argue that all white households have majority white preferences, but on average the preference of white households is for majority white.

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Acknowledgments

We would like to acknowledge the insightful and helpful comments of the editor and two anonymous reviewers, and the availability of the LAFANS data in the California Center for Population Research at HCLA.

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Correspondence to William A. V. Clark.

Appendix

Appendix

Ethnic composition of destination block group for whites and Hispanics.

 

 

Origin

Destination

% White

% Black

% Asian

% Latino

% White

% Black

% Asian

% Latino

White households below median income

White origin

0–40%

21.20

7.69

16.40

51.47

24.48

8.55

15.26

48.53

40–60%

49.19

5.58

10.69

29.23

29.61

11.71

17.34

38.16

60–100%

75.51

1.85

6.94

10.71

38.74

10.36

12.91

33.95

White households above median income

White origin

0–40%

22.54

3.14

31.04

39.03

42.61

8.59

23.52

20.06

40–60%

52.60

3.61

7.26

33.59

52.50

4.88

17.96

20.17

60–100%

76.62

1.89

7.65

9.50

75.93

2.81

7.04

9.56

Hispanic households below median income

White origin

0–40%

37.80

13.95

22.48

21.21

18.19

7.88

13.28

57.88

40–60%

13.03

19.99

13.20

51.52

8.22

15.04

8.98

66.66

60–100%

5.23

8.26

4.69

80.72

7.44

7.45

4.92

78.57

Hispanic households above median income

White origin

0–40%

43.35

4.69

23.87

24.37

28.69

2.92

10.76

53.98

40–60%

9.30

16.34

18.37

51.99

20.29

11.77

29.66

34.24

60–100%

8.71

3.37

5.91

80.82

15.97

3.68

5.18

73.88

  1. Source: LAFANS Survey data

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Clark, W.A.V., Ledwith, V. How much does income matter in neighborhood choice?. Popul Res Policy Rev 26, 145–161 (2007). https://doi.org/10.1007/s11113-007-9026-9

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  • DOI: https://doi.org/10.1007/s11113-007-9026-9

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