TY - GEN AB - Residential segregation is a key public policy issue that is driven by economic fac- tors on the one side, and individual attitudes towards ethnic diversity on the other side. We assume a modeling framework that consists of a population of two ethnic groups, a rental market for each neighborhood, and household's utility which depends on consumption and housing. Accounting for income disparities and heterogeneous preferences for living in ethnically diverse neighborhoods, we examine the residential segregation patterns that occur when households make their neighborhood choice by taking economic and diversity related aspects into account. The investigation reveals that ethnic income disparities and heterogeneous preferences are antagonistic forces such that a certain level of income stratification is the price for residential integra- tion. In light of these findings, we discuss to which extent and under which conditions housing subsidy policies can favor residential integration. DA - 2018 DO - 10.4119/unibi/2920395 KW - Residential segregation KW - Ethnic income disparities KW - Housing subsidies KW - Evolutionary dynamics LA - eng PY - 2018 SN - 2196-2723 SP - 31- TI - Residential segretation. The role of inequality and housing subsidies UR - https://nbn-resolving.org/urn:nbn:de:0070-pub-29203955 Y2 - 2024-11-22T08:09:17 ER -