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