John F. Kain

1
John F. Kain Housing
Segregation, Negro Employment,
and Metropolitan Decentralization
Quarterly Journal of
Economics 82 (1968)
Presentation
by Aida K.
Lipe
2
What is
this article about? Negro residential
segregation. Segregation in Detroit and
Chicago. Racial discrimination in housing
market may increase Negro unemployment
rate. Postwar dispersal of population and
employment in Chicago.
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Housing segregation affects the distribution
and level of Negro employment It is
necessary to comprehend the the location and
growth in metropolitan areas. Negro
residential segregation indexes have been
calculated from block statistics for 207 cities
in 1960 and 109 cities in 1940 and 1950.
A value of 0 indicates that every block has the
same portion of Negroes. A value of
100indicates segregated distribution
wherein each block contains only whites or
Negroes, but not both. Negroes are far more
segregated than any other ethnic or racial
group.
4
Segregation in Detroit and Chicago
Detroit
Chicago Nonwhite ghettos lie within
Nonwhite ghettos lie in the Central City.
the South Side of C. City.
Detroits principal ghetto Chicagos
principal ghetto houses approximately 93
houses approximately 96 of Detroits
nonwhite work of Chicagos nonwhite
force.
work force. Detroit City segregation
Chicago City segregation indexes
indexes 1940
89.9 95.0 1950
88.8 92.1
1960 84.5
92.6
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Housing market segregation may affect the
distribution and level of Negro employment
High transportation cost. The distance of
reaching jobs may discourage them from from
seeking employment. Less information and less
opportunity to learn about new jobs.
Discrimination of employers outside the
ghettos. Employers in the ghetto may
discriminate in favor of Negroes.
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Regression Model
Detroit
R? (1) W 12.78 0.091R -
1.141dn 0.359 (2) W
12.64 0.100R - 0.758dm
0.382 (3) W 13.45 0.082R - 0.563dn - 0.52dm
0.40 Chicago (4) W 9.18 0.458R - 0.521dn
0.78 (5) W 9.28
0.456R - 0.409dm
0.782 (6) W 9.36 0.455R - 0.324dn - 0.176dm
0.785 W Employment Ratio R?
Residence Ratio dn dm respectively, distance
from the nearest and the major

ghetto

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Results Coefficients of the
residence ratio much larger in Chicago than in
Detroit. Distance coefficients are much larger
in Detroit than in Chicago. These findings
seem to suggest that housing market
segregation does strongly affect the location of
Negro employment.
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Racial discrimination in housing market reduces
Negro employment opportunities. Estimate
Negro job loss caused by housing segregation
assuming, Residence ratio is identical for
each zone and dn and dm equal zero.
Multiplying the estimated percentage nonwhites
times total number employed in Chicago or
Detroit. Subtracting estimated nonwhite
employment from actual. This will be the
looses of Negro jobs. Chicago 22,157 -
24,622 Detroit 3,863-9,113
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Postwar dispersal of population in Chicago
1950-60
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Postwar dispersal of employment
1947-1963
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Conclusion From the analyses of data for
Chicago and Detroit metropolitan areas,
Housing market segregation affects the
distribution of Negro employment. Housing
market segregation may reduce the level of
Negro employment and contribute to high
unemployment rates of metropolitan Negroes.
Postwar suburbanization of metropolitan
employment may be undermining the position of
the Negro.