Volume 2, No. 1, April 2003

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Revisiting Residential Segregation by Income:
A Monte Carlo Test
Junfu Zhang
Research Fellow, Public Policy Institute of California, U.S.A.
Abstract
A long-standing hypothesis states that racial housing segregation in the U.S. results from the income inequalities between blacks and whites. This paper reexamines this hypothesis with a new methodology. We present a Monte Carlo study to show that segregation by income explains only a small proportion of the high level of segregation.
Key words: residential segregation; Monte Carlo test; dissimilarity index
JEL classification: C12; C15

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