Effects of Racial Segregation on Economic Productivity in U.S. Cities

29 Pages Posted: 7 Dec 2022

See all articles by Andrew Stier

Andrew Stier

University of Chicago - Department of Psychology

Sina Sajjadi

Central European University

Luis Bettencourt

University of Chicago - Mansueto Institute for Urban Innovation

Fariba Karimi

GESIS-Leibniz Institute for the Social Sciences

Marc G. Berman

University of Chicago - Department of Psychology

Date Written: December 6, 2022

Abstract

Homophily and heterophobia, the tendency for people with similar characteristics to preferentially interact with (or avoid) each other are pervasive in human social networks. Here, we develop an extension of the mathematical theory of urban scaling which describes the effects of homophily and heterophobia on social interactions and resulting economic outputs of cities. Empirical tests of our model show that increased residential racial heterophobia and segregation in U.S. cities are associated with reduced economic outputs and that the strength of this relationship increased throughout the 2010s. Our findings provide the means for the formal incorporation of general homophilic and heterophobic effects into theories of modern urban science and suggest that racial segregation is increasingly and adversely impacting the economic performance and connectivity of urban societies in the U.S.

Keywords: homophily, heterophobia, social networks, urban scaling, cities, segregation, race

Suggested Citation

Stier, Andrew and Sajjadi, Sina and Bettencourt, Luis and Karimi, Fariba and Berman, Marc G., Effects of Racial Segregation on Economic Productivity in U.S. Cities (December 6, 2022). Mansueto Institute for Urban Innovation Research Paper 34, Available at SSRN: https://ssrn.com/abstract=4295426 or http://dx.doi.org/10.2139/ssrn.4295426

Andrew Stier (Contact Author)

University of Chicago - Department of Psychology ( email )

5848 S. University Avenue
Chicago, IL 60637
United States

Sina Sajjadi

Central European University

Hungary

Luis Bettencourt

University of Chicago - Mansueto Institute for Urban Innovation ( email )

5735 S Ellis Avenue
Chicago, IL 60637
United States

Fariba Karimi

GESIS-Leibniz Institute for the Social Sciences ( email )

Unter Sachsenhausen 6-8
Cologne, 50667
Germany

Marc G. Berman

University of Chicago - Department of Psychology ( email )

United States

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