A new study suggests that racial sorting might have occurred even without the discriminatory housing policies we know bolstered segregation.

We already know that federal housing policies such as redlining, real estate practices like blockbusting, and the resulting “white flight” to suburbs in post-World War America caused cities to segregate, sealing generations of African Americans into poverty.

But even if these discriminatory policies hadn’t existed, the fate of our cities may not have been all that different, a new working paper published in the National Bureau of Economic Research suggests.

Economists Allison Shertzer and Randall P. Walsh at the University of Pittsburgh analyzed data from 10 large U.S. cities in the Northeast and the Midwest from 1900 to 1930 to isolate the role of white flight that occurred in that period—before the Federal Housing Authority, which instituted many of the discriminatory housing policies, was born. They found that the exodus of white people from a particular neighborhood following the arrival of black residents led to a 34 percent increase in segregation during the 1910s; In the 1920s, it resulted in a striking 50 percent increase.

Here’s how the authors summarize their findings in the NBER paper:

Our finding that sorting by whites out of neighborhoods with growing black population was a quantitatively important phenomenon decades before the postwar opening of the suburbs is novel. This analysis suggests that segregation would likely have arisen even without the presence of discriminatory institutions as a direct consequence of the widespread and decentralized relocation decisions of white individuals. Whites could simply have responded to policies that reduced barriers to black settlement in their vicinity by accelerating their departure for neighborhoods at lower risk of “encroachment.”

Racial Sorting and the Emergence of Segregation in American Cities

Allison Shertzer, Randall P. Walsh

NBER Working Paper No. 22077

Issued in March 2016

NBER Program(s):   DAE   LE 

Residential segregation by race grew sharply in the United States as black migrants from the South arrived in northern cities during the early twentieth century. The existing literature emphasizes discriminatory institutions as the driving force behind this rapid rise in segregation. Using newly assembled neighborhood-level data, we instead focus on the role of “flight” by whites, providing the first systematic evidence of the role that prewar population dynamics played in the emergence of the American ghetto. Leveraging exogenous changes in neighborhood racial composition, we show that white departures in response to black arrivals were quantitatively large and accelerated between 1900 and 1930. Our preferred estimates suggest that white flight was responsible for 34 percent of the increase in segregation over the 1910s and 50 percent over the 1920s. Our analysis suggests that segregation would likely have arisen in American cities even without the presence of discriminatory institutions as a direct consequence of the widespread and decentralized relocation decisions of white urban residents.