Economic Restructuring and ‘Racial Stigma’ in Detroit and Beyond Supplemental Lecture Material EC 1370: Race and Inequality in US Prof. G. Loury, 2/9/10.

Economic Restructuring and ‘Racial Stigma’ in Detroit and Beyond

Supplemental Lecture MaterialEC 1370: Race and Inequality in US

Prof. G. Loury, 2/9/10

1.

2.

3.

Summary of Thomas Sugrue’s Argument:

4.

Please note the role of systematic, coordinated campaigns ofracial violence in sustaining the racial geography of mid-20th

century Detroit. (recall Lansberry’s play, “A Raisin in the Sun”)

5.

6.

(Los Angeles in the 1990s)

Neighborhood Racial Composition Preferences

Social Capital in a Diverse Society:Ethnic Diversity Seems to Undermine

Social Trust in American Cities

Drawn from the work of Robert D. PutnamHarvard University

Herfindahl index of racial homogeneity

Inte

r-ra

cia

l tru

st

East Bay (CA)

National

Denver

Rural South Dakota

North Minneapolis

MinneapolisRochester

Delaware

Boulder

Boston

Grand Rapids

Seattle

Bismarck

Lewiston (ME)

Silicon Valley

Greensboro

New Hampshire

Cleveland

Fremont (MI)

Indiana

Montana

Yakima

Central Oregon

York (PA)

Winston-Salem

Detroit

San Francisco

San Diego

St. Paul

Los Angeles

Kalamazoo

Rural West Virginia

Houston

East Tennessee

Cincinnati

Chicago

Syracuse

Charlotte

BirminghamBaton Rouge

Atlanta

Phoenix

Herfindahl index of racial homogeneity

Tru

st o

f ow

n e

thn

ic g

rou

p

East Bay (CA)

National

Denver

Rural South Dakota

North Minneapolis

Minneapolis

Rochester

Delaware

Boulder

Boston

Grand Rapids

Seattle

Bismarck

Lewiston (ME)

Silicon Valley Greensboro

New Hampshire

Cleveland

Fremont (MI)

Indiana

Montana

Yakima

Central Oregon

York (PA)

Winston-Salem

Detroit

San Francisco

San Diego

St. Paul

Los Angeles

Kalamazoo

Rural West Virginia

Houston

East TennesseeCincinnati

Chicago

Syracuse

Charlotte

Birmingham

Baton Rouge

Atlanta

Phoenix

Herfindahl index of racial homogeneity

Gin

i in

de

x o

f in

com

e in

eq

ua

lity

East Bay (CA)

National

Denver

Rural South Dakota

North Minneapolis

Minneapolis

Rochester

Delaware

Boulder

Boston

Grand Rapids

Seattle

Bismarck

Lewiston (ME)Silicon Valley

Greensboro

New Hampshire

Cleveland

Fremont (MI)

Indiana

Montana

Yakima

Central Oregon

York (PA)

Winston-Salem

Detroit

San Francisco

San Diego

St. Paul

Los Angeles

Kalamazoo

Rural West VirginiaHouston

East Tennessee

CincinnatiChicago

Syracuse

Charlotte

Birmingham

Baton Rouge

Atlanta

Phoenix

Race and Class-based spatial segregation are deeply embeddedin the structure of American cities.

Here’s some further evidence on this:

Residential Segregation in Manhattan: Income vs. Race

Geographic Distribution of Incarceration, New York City, 1985 and 1996

On the Logic of Racial Stereotypes and the Self-fulfilling Prophecy:

A simple economic modelEC 1370 , 2/9/10

= employer’s estimate of likelihood that a worker with “unclear” test has invested

Note in this formula that s exceeds 2/3 if and only if Π exceeds ½.

NOTICE THAT IN THE ‘PESSIMISTIC’ EQUILIBRIUM ONLY 1/9 OF THEWORKERS END-UP GETTING HIRED, WHILE IN THE ‘OPTIMISTIC’EQUILIBRIUM FULLY 7/9 OF THE WORKERS ARE HIRED!!