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Tesei, A. (2012). Racial Fragmentation, Income Inequality and Social Capital: New Evidence from the US

Existing studies of social capital formation in US metropolitan areas have found that social capital is lower when there is more income inequality and greater racial fragmentation. I add to this literature by examining the role of income inequality between racial groups (racial income inequality). I fi nd that greater racial income inequality reduces social capital. Also, racial fragmentation is no longer a signi cant determinant of social capital once racial income inequality is accounted for. This result is consistent with a simple conceptual framework where concurrent di erences in race and income are especially detrimental for social capital formation. I nd empirical support for further implications deriving from this assumption. In particular, I show that racial income inequality has a more detrimental e ect in more racially fragmented communities and that trust falls more in minority groups than in the majority group when racial income inequality increases.

Authors

Tesei, Andrea

Andrea Tesei is Assistant Professor at Queen Mary University of London. He received his PhD from Universitat Pompeu Fabra in 2012. In the past, he worked at the research department of the Bank for International Settlements in Hong Kong. His research interests include economic development, political...

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