2007 August 30 Thursday
People Pay More To Live Near Own Kind

People pay extra to be around their own kind.

Using restricted-access Census data, a new study examines a quarter-million households on a block-by-block basis to yield new results about the correlation between household attributes and school quality. The researchers find that, conditional on income, households prefer to self-segregate on the basis of both race and education.

“Economists have long been interested in estimating household preferences for school and neighborhood attributes, given their relevance to many central issues in applied economics,” write Patrick Bayer (Duke University and NBER), Fernando Ferreira (University of Pennsylvania), and Robert McMillan (University of Toronto and NBER) in the forthcoming issue of the Journal of Political Economy.

Specifically, while all households prefer to live in higher-income neighborhoods, college-educated households are willing to pay $58 more per month than those without a college degree to live in a neighborhood that has 10 percent more college-educated households. In fact, the researchers find that households without a college degree would actually need compensating to live in a neighborhood with 10 percent more college-educated neighbors.

Similarly, blacks are willing to pay $98 more per month to live in a neighborhood that has 10 percent more black households, compared to a negative willingness to pay on the part of white households to live in a similar neighborhood. Perhaps unsurprisingly, increases in household income and education also lead to a greater willingness to pay for better schools.

These results are not particularly surprising to those familiar with Robert Putnam's research on how highly diverse communities are low trust communities. People like to be around their own kind. Well, they are willing to pay for that privilege. Why is it that academic advocates of diversity and immigration argue for changing society in ways that will decrease people's perceived sense of well being?

Share |      By Randall Parker at 2007 August 30 11:06 PM  Economics Demographic


Comments
Bellwether said at August 31, 2007 12:21 AM:

It's just amazing to me how much academics, politicians and intellectual "elites" in their ivory towers spend and hand-wring to come to the same conclusions that the man on the street will much faster, from simple common sense. People with kinship ties to others tend to associate better with their kin, be more generous, have a better sense of community because they have a greater sense of shared destiny and interests. Wow, stop the presses.

So-- drumroll it-- Whites tend to stay with other Whites, Blacks with other Blacks, Latinos with other Latinos, native Americans with native Americans, Muslims with other Muslims, Koreans with Koreans, Chinese with Chinese, Filipinos with Filipinos, Hmong with other Hmong... and so forth. I guess that observation qualifies me for a PhD in sociology now.

Liberals and social engineers seem to fantasize that they can overcome this very hard-wired tendency by flooding us with cultural Marxist ideology and sheer demographic overload-- they only succeed in destroying the very countries that they've regrettably been placed in charge of.

Britain is in its death throes because of this-- more than 500,000 immigrants every year into a small crowded country (England for the most part), the vast majority from South Asia, the Caribbean and sub-Saharan Africa, adding tremendously to the crime, pollution and frustration that plagues the country. So 2-300,000 mostly White Britons permanently emigrate, with the number rapidly rising. http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/08/22/nleaving322.xml IOW within a couple decades, we will have a non-White England. The formula is simple-- major crowding of England's cities and towns with an alien people weakens the bonds that Britons have with their communities and their country, so people leave.

New Zealand and Canada are both rapidly following in the UK's wake. NZ already has a very rapidly growing native Maori population, with major Pacific, African and South Asian immigration on top of that, with a White minority by 2028 or thereabouts. Canada will have majority non-White populations in provinces such as Ontario and BC within 15-20 years, and overall in 30 years. South Africa is already gone. The United States is headed for a White minority by 2030 (not 2050), and large regions of the country are already there, especially for K-12 students. Even Australia is seeing Sydney and Melbourne turned into non-European outposts.

The result of this ethnic makeover is that Whites feel pushed out, and they're either displaced internally (e.g. the exodus of American Whites from Arizona, California and the rest of the Southwest to the northern Mountain, Great Plains, some places in the Upper Midwest and Pennsylvania/Ohio River Valley states) or-- increasingly-- they leave the country entirely. People don't want to be boxed in by others from different tribes. And unless the USA partitions somehow in the next 20 years, it will be a majority non-European nation.

Even the immigration destinations for the emigrants from the UK, North America, NZ and Australia bear witness to this. Some European countries have a "co-ethnic preference" system in place, the most notable being Germany which gives immigration advantages to ethnic Germanics and other "Nordic peoples"-- e.g. German-Americans and ethnic Germans in Russia, but also to Dutch-, Scandinavian- and English-Americans (Anglo-Saxons having originated in northern Germany) as well as the northern Celts and Baltic Poles-- who have had a long association with the ethnic German state. The German Turkish population has been simultaneously dropping due both to active deportation and passive factors (Turks returning home to work in new Turkish factories, encouraged by the German government), while ethnic Germans in the former USSR as well as the Americans arrive by the millions, especially if they have skills and inclinations toward starting families. Also despite the secularism in much of Europe, Germany's actually been enjoying pockets of resurging Christian participation.

So when emigrating Britons, New Zealanders, Canadians, Americans and Australians are looking for a place to go to, they see Germany-- increasingly taking on an identity as a solid, White, resurging Christian outpost with a remarkable Western civilization that isn't ashamed to flaunt itself to the outside world in its great cities-- and find a more desirable place. Germany never used to be a major immigration destination (the warmer Mediterranean dominates then and now, but not as much as before) but is increasingly a draw for White emigrants from other countries being overrun by Third World immigration. France has gotten very tough in the past 2 years, as has Denmark, Austria, even the Netherlands and Belgium are tightening the rules and favoring immigration by White co-ethnics (subtly or overtly), so they too increase their attractiveness.

Political correctness is more than a nuisance, it's literally killing countries like the UK, New Zealand, Canada and the USA since we can't even discuss truths like this that are blindingly obvious. It's countries like Germany, Austria and Denmark that aren't afraid to give preference to their co-ethnics to dwell within the country, that are going to survive this storm and emerge as the heart of whatever is left of the West in 20 years.

Audacious Epigone said at August 31, 2007 8:00 AM:

In the words of Philippe Rushton:

"Likeness leads to liking. People have a need to identify and be with others like themselves. It is a powerful force in human affairs."

Irish Savant said at September 1, 2007 2:33 PM:

I'm fascinated by the information on Germany, sepcifically that they have ethnic preferences (i knew there was one for the likes of Germans in Russia) but other Norther Europeans? How do they manage it? Is Germany really a destination for non Third World immigrants? I'd love to think all this is true, but is it? The EU has strong laws that make this kind of thing very difficult.

John S Bolton said at September 1, 2007 7:36 PM:

No, the commenter 'bellwether' has mixed in exaggerations and misstatements aplenty.
Should someone tell that a bellwether is a castrated sheep wearing a bell, and not a good choice for a nom de guerre?
"...researchers find that households without a college degree would actually need compensating to live in a neighborhood with 10 percent more college-educated neighbors.
Similarly, blacks are willing to pay $98 more per month to live in a neighborhood that has 10 percent more black households..."
The interesting part is that the groups, classes and so on, which are lower on IQ,
(notice that standardized testing was used along with years of education)
have strong disaffinity for those above them on these indicators of IQ.
This in spite of all manner of propaganda towards the other direction, where everyone supposedly wants
the government to intervene to get them into the smart neighborhood, better school, more sophisticated club, etc.
Aggressive integrationists haven't much of a constituency, other than their own power-greed, it appears.
Sensibly the government has been moving away from that position though.
Now why would the dumber have this sort of disaffinity for the smarter?
Postulate that for each point of IQ differential between two groups juxtaposed, the lower
has greater incentive to shift status competition away from such as are positively correlated
with IQ, and towards contests in ruthless, self-destructive violence, wherein
the lower group(also individuals) has unchallengeable advantage for the most part.
The lower group may anticipate this shift coming into play beforehand, and
wish to avoid it, by staying further off, but feeling that they cannot control such impulses
well except by avoidance of what proximities and comparisons give rise to it.
Would this explain it, or would some other processes explain it better.
Remember the lower-down sacrifice advantages by indulging the above sort of disaffinity more than they have to.


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