This paper examines segregation in American cities from 1890 to 1990. From
1890 to 1940, ghettos were born as blacks migrated to urban areas and citie
s developed vast expanses filled with almost entirely black housing. From 1
940 to 1970, black migration continued and the physical areas of the ghetto
s expanded. Since 1970, there has been a decline in segregation as blacks h
ave moved into previously all-white areas of cities and suburbs. Across all
these time periods there is a strong positive relation between urban popul
ation or density and segregation. Data on house prices and attitudes toward
integration suggest that in the mid-twentieth century, segregation was a p
roduct of collective actions taken by whites to exclude blacks from their n
eighborhoods. By 1990, the legal barriers enforcing segregation had been re
placed by decentralized racism, where whites pay more than blacks to live i
n predominantly white areas.