Residential segregation is a central factor in explaining socioeconomic gaps across race and ethnicity in the United States. Place of residence directly impacts access to schools, jobs, and health care. There is an ever-evolving literature across the social sciences disciplines documenting the general patterns in residential segregation as well as the causes and consequences of those patterns. This article reviews key parts of that literature. We provide an overview of the measurement of segregation and the general evolution of segregation patterns over time and at different scales. We then review the literatures on both segregation’s determinants and its impact on a range of socioeconomic outcomes. We highlight the potential for new insights to be gained from new approaches to quantifying segregation and new frameworks such as stratification for understanding its complex roots.

We use new county-level segregation estimates for the period of 1880 to 1940 to document a general rise in residential segregation in both urban and rural counties occurring alongside rising homeownership rates. However, we find a negative correlation between segregation and homeownership across space for both black and white households. Following Fetter (2013), we show that living in a more segregated county substantially reduced the impact of GI Bill benefits on white homeownership rates, suggesting that segregated locations potentially hindered both white and black homeownership.

South Africa's Post-apartheid Two-Step: Social Demands versus Macro Stability by Brahima Coulibaly and Trevon D. Logan. Published in volume 99, issue 2, pages 275-81 of American Economic Review, May 2009

Gaps in educational performance between whites and racial minorities are not present at early ages but do emerge early in the schooling years and increase over time (Roland Fryer and Steve Levitt 2006, forthcoming). James Heckman (2007) assembles evidence from both the bio logical and social sciences which highlights the dynamic complementarity of the learning pro cess?the notion that early learning is vital for learning later on. A recent literature in econom ics finds evidence that the returns to early invest ments in children yield high returns to society (Heckman and Dimitriy Masterov 2007). That educational gaps exist and worsen over time is troubling as educational attainment is associated with a host of socioeconomic outcomes such as health, earnings, and wealth (David Cutler and Adriana Lleras-Muney 2008). At the same time, gaps in educational performance and outcomes are but one dimension of racial inequality. One area of research has been with respect to racial health disparities, which unlike educational dis parities appear at very early ages and increase over time (Linda Dynan (2009) provides a lit erature review). Little work, however, directly analyzes how health disparities in children may impact other outcomes.1 The fact that health out comes may lead to socioeconomic differences which themselves may lead to further health and

We investigate the effect of income on the long-standing racial mortality gap in the United States by using evidence from White and Black Civil War veterans who went on to receive postwar pensions. To circumvent endogeneity, we propose an exogenous source of variation in pension income: the judgment of the doctors who certified disability. We find large effects of pension income on longevity; large enough to close the Black–White mortality gap, in principle. However, because physicians discriminated against Blacks when evaluating the existence and severity of disabilities, Blacks received reduced pension benefits that failed to eliminate racial mortality gaps in practice. Our findings shed light on the role of beliefs about race, as opposed to racial animus, in contributing to racial differentials in well-being.

The economic analysis of racial discrimination in public accommodations is remarkably limited. To study this issue, we construct a national data set of nondiscriminatory establishments from the Negro Motorist Green Books, a travel guide published from 1936 to 1966 to aid Black Americans in finding nondiscriminatory retail and service establishments. We document patterns in the geographic spread and evolution of Green Book establishments, as well as the correlates of Green Book presence. We find that economic and social measures, as well as state laws relating to racial discrimination and antidiscrimination, were correlated with the provision of nondiscriminatory services. We then use the Green Book data to test whether market conditions and white consumer discrimination led businesses to bar Black customers prior to the Civil Rights Act of 1964. We use plausibly exogenous variation from white World War II casualties and Black migration patterns to isolate the effect of a change in the racial composition of consumers on the growth of nondiscriminatory businesses. We find that the share of nondiscriminatory establishments grew faster in locations with larger increases in the share of the Black population, but the magnitudes were small. These results highlight the importance of federal legislation in ending racial discrimination in public accommodations.