Title

Social interactions, residential segregation and the dynamics of tipping

Publication Name

Journal of Evolutionary Economics

Abstract

We develop an analytically tractable population dynamics model of heterogeneous agents to characterize how social interactions within a neighborhood determine the dynamic evolution of its ethnic composition. We characterize the conditions under which integration or segregation will occur, which depends on the majority’s social externality parameter and net benefit from leaving, and the minority’s leaving probability. Minority segregation may result from the process of tipping, which may arise from three possible channels: two are related to exogenous shocks (migration flows and changes in tipping points) and one is related to the endogenous probabilistic features of our framework (endogenous polarization). This characterization of integration and segregation conditions yields interesting policy implications for social and urban planning policies to mitigate segregation.

Open Access Status

This publication may be available as open access

Volume

31

Issue

4

First Page

1355

Last Page

1388

Funding Number

PRA_2020_79

Funding Sponsor

Università di Pisa

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Link to publisher version (DOI)

http://dx.doi.org/10.1007/s00191-021-00742-7