TO GHETTO OR NOT TO GHETTO - ETHNICITY AND RESIDENTIAL SEGREGATION

This paper analyzes the link between ethnicity and the choice of resid ing in ethnically segregated neighborhoods. Data drawn from the Nation al Longitudinal Surveys of Youth show that there exist strong human ca pital externalities both within and across ethnic groups. As a result, the segregation choices made by particular households depend both on the household's economic opportunities and on aggregate characteristic s of the ethnic groups. The evidence suggests that highly skilled pers ons who belong to disadvantaged groups have lower probabilities of eth nic residential segregation-relative to the choices made by the most s killed persons in the most skilled groups. (C) 1998 Academic Press.