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How social segregation leads to economic inequality


Indeed, the power of segregation may be even greater than commonly thought. The study shows that even when there is no history of discrimination between two groups, social segregation alone can cause dramatic economic inequities to develop.


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Figure 1: Housing patterns show the extent of social segregation in Manhattan. This map shows the relative proportion of black households and non-Hispanic white households, using figures and classifications from the 2000 Census.
Sethi and Somanathan


This result should serve as a warning for societies with strong social divisions, Sethi says. Even when social groups are economically equal, continued segregation may result in inequality over time.


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Figure 2: Segregation in Manhattan is not simply a result of discrepancies in income, a new analysis shows. This map shows what the level of racial segregation would be if it were merely a side effect of segregation by income.
Sethi and Somanathan