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Choice Set Formation in Residential Mobility and Its Implications for Segregation Dynamics.

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Area of Science:

  • Urban Sociology
  • Behavioral Economics
  • Computational Social Science

Background:

  • Residential segregation persists despite fair housing laws.
  • Understanding neighborhood choice mechanisms is crucial for addressing inequality.
  • Qualitative studies highlight complex decision-making in housing search.

Purpose of the Study:

  • To develop a statistical model of neighborhood choice incorporating cognitive and decision-theoretic insights.
  • To analyze how affordability and search behavior influence choice sets for minority groups.
  • To assess the contribution of these choice sets to segregation using an agent-based model.

Main Methods:

  • Developed a statistical model of sequential neighborhood choice.
  • Incorporated selective consideration of destinations.
  • Utilized data from the Los Angeles Family and Neighborhood Survey.
  • Employed an agent-based model to simulate segregation outcomes.

Main Results:

  • Affordability constraints and short-distance moving preferences lead to racially stratified choice sets for Black and Hispanic households.
  • These choice sets disproportionately include neighborhoods with higher representation of their own racial group.
  • Cognitive decision strategies amplify existing patterns of segregation.

Conclusions:

  • Neighborhood choice is influenced by cognitive biases and practical constraints.
  • Racially stratified choice sets are a mechanism contributing to residential segregation.
  • Behavioral decision-making processes can exacerbate social inequalities.