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Competition in the Promised LandBlack Migrants in Northern Cities and Labor Markets$
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Leah Platt Boustan

Print publication date: 2016

Print ISBN-13: 9780691150871

Published to Princeton Scholarship Online: January 2018

DOI: 10.23943/princeton/9780691150871.001.0001

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Motivations for White Flight: The Role of Fiscal/Political Interactions

Motivations for White Flight: The Role of Fiscal/Political Interactions

(p.122) Chapter 5 Motivations for White Flight: The Role of Fiscal/Political Interactions
Competition in the Promised Land

Leah Platt Boustan

Princeton University Press

This chapter compares the trajectory of housing prices in adjacent neighborhoods separated by a municipal border. In each of these pairs, one neighborhood is located within the city limits and the other is just across the border into the suburbs. The housing stock and local attributes of these neighborhoods were virtually identical, but residents on either side of the municipal border were assessed different property tax rates and had access to a different set of public goods. This chapter shows that the price premium associated with suburban units increased at the border as the black population rose in the city from 1960 to 1980, even though the racial composition of the neighborhoods under consideration was little changed. This pattern suggests that the decline in the demand for city residence with black in-migration was, in part, due to fiscal/political changes at the citywide level.

Keywords:   housing prices, fiscal changes, political changes, property tax rates, public goods, suburban units

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