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Racial Segregation in Housing Markets and the Erosion of Black Wealth

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A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

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en

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13

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Review of Economics Statistics, Volume 107, issue 1, pp. 42-54

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This paper studies how the expansion of segregated neighborhoods eroded black wealth in prewar American cities. Using a novel sample of matched addresses, we find that over a single decade rental prices soared by roughly 50% on city blocks that transitioned from all white to majority black. Meanwhile, pioneering black families paid a 28% premium to buy a home on a majority white block, after which their homes lost 10% of their value. These findings strongly suggest that segregated housing markets cost black families much of the gains associated with moving north during the Great Migration.

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Akbar, P, Hickly, S L, Shertzer, A & Walsh, R P 2025, 'Racial Segregation in Housing Markets and the Erosion of Black Wealth', Review of Economics Statistics, vol. 107, no. 1, pp. 42-54. https://doi.org/10.1162/rest_a_01276

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