How Segregated is Urban Consumption?

97 Pages Posted: 18 Sep 2017

See all articles by Donald R. Davis

Donald R. Davis

National Bureau of Economic Research (NBER); Columbia University

Jonathan I. Dingel

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Joan Monras

Centre for Monetary and Financial Studies (CEMFI)

Eduardo Morales

Princeton University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2017

Abstract

We provide measures of ethnic and racial segregation in urban consumption. Using Yelp reviews, we estimate how spatial and social frictions influence restaurant visits within New York City. Transit time plays a first-order role in consumption choices, so consumption segregation partly reflects residential segregation. Social frictions also have a large impact on restaurant choices: individuals are less likely to visit venues in neighborhoods demographically different from their own. While spatial and social frictions jointly produce significant levels of consumption segregation, we find that restaurant consumption in New York City is only about half as segregated as residences. Consumption segregation owes more to social than spatial frictions.

Suggested Citation

Davis, Donald R. and Dingel, Jonathan I. and Monras, Joan and Morales, Eduardo, How Segregated is Urban Consumption? (September 2017). NBER Working Paper No. w23822, Available at SSRN: https://ssrn.com/abstract=3038611

Donald R. Davis (Contact Author)

National Bureau of Economic Research (NBER) ( email )

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Columbia University ( email )

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Jonathan I. Dingel

University of Chicago - Booth School of Business ( email )

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National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
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Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Joan Monras

Centre for Monetary and Financial Studies (CEMFI) ( email )

Casado del Alisal 5
28014 Madrid
Spain

Eduardo Morales

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

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