For the upper-income classes these differences can even be positive, often giving them better social and educational background or more pleasing environments in their metropolitan area.
These neighborhoods can make themselves better off in comparison to lower-income ones, mostly due to public policy (and the difference among the tax base each class pays).
The growth was stronger for black families than white ones as well as the covariance of income inequality and the segregation of poverty and affluence.
Finally, a table showing both consumer units and national income in percentages is drawn up, and the data is placed in a diagram.
[2] Even though the segregation of the affluence is stronger, the research shows that it remains stable over the years (on the contrary to the other types).
[8] Metropolitan income segregation also differs among races due to historical racial discrimination, when fewer residential options were available for black households in comparison to the white household of the same income level and wealth; then an expansion in housing options occurred in the late 20th century.
Many studies use dissimilarity index (unlike when measuring racial segregation) – whose possible disadvantage is the substantial loss of information.
This approach allows to measure this type of segregation even if the precise threshold of the income is unknown and we choose only based on the percentiles.
Additionally, the residential income segregation index sums the percentage of poorer households living in a largely poorer area and the percentage of richer households living in a largely richer area.
[12] The following three metropolitan regions were recorded as having the biggest degrees of income segregation: Dallas, New York and Houston.
[10] The following three metropolitan regions were recorded as having the lowest degrees of income segregation: Atlanta, Chicago and Boston.
[13] It is a way of describing and comparing different income levels in a given neighborhood with its physical location.
[16] Dawkins proposes a new method of substituting these two coefficients by two "Covariance based formulas"[14] based on parameters, such as different types of Aggregate household income of a neighborhood and region, average rank and spatial rank of income of a given neighborhood.
[17] The Gini coefficient takes the Lorenz curve and the perfect equality income distribution into account.
[18] One of the manifestations of this phenomenon is an increase in residential income segregation, where in 1970, 66% of families lived in middle-class neighborhoods and by 2007, that number decreased to 43%.
Additionally, income segregation can result in increasing the difference in outcomes depending on whether they come from a rich or poor household.
[5] Some proposals have been made to help to reduce the income segregation, which is in the US even stronger than in the other developed countries,[6] such as the integration of disadvantaged families into the mixed-income communities.
Firstly, it shows the economic societal differences or inequality, which largely impact social and political issues.
These issues can be the unequal opportunities with a lower access to goods and services as well as restricted social mobility.
It can also add to the marginalization of targeted groups, increasing discrimination and contributes to the amplification of stereotypes.
Additionally, income segregation can slow down economic growth as there is less space for innovation and entrepreneurship due to certain groups being disadvantaged.
[23] In conclusion, income segregation is important because it allows us to recognize and address significant issues such as inequality and discrimination.