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Choice Set Formation in Residential Mobility and Its Implications for Segregation Dynamics
Elizabeth Bruch1, Joffre Swait2
1Department of Sociology and Population Studies, University of Michigan, Ann Arbor, MI, USA. ebruch@umich.edu.
Demography
|August 23, 2019
Summary
Cognitive decision-making and housing search constraints create racially stratified neighborhood choices for Black and Hispanic households. These patterns can intensify residential segregation and inequality.
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.
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