[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/fip/fedpwp/93604.html
   My bibliography  Save this paper

“Sort Selling”: Political Polarization and Residential Choice

Author

Listed:
  • W. Ben McCartney
  • John Orellana
  • Calvin Zhang
Abstract
Partisanship and political polarization are salient features of today’s society. We merge deeds records with voter rolls and show that political polarization is more than just “political cheerleading.” Descriptively, homeowners are more likely to sell their homes and move when their next-door neighbors are affiliated with the opposite political party. We use a novel, new-next door neighbor identification strategy along with rich demographic control variables and time by-geography fixed effects to confirm causality. Consistent with a partisanship mechanism, our results are strongest when new next-door neighbors (i) are more likely to be partisan and (ii) live especially close by. Our findings help explain increases in political segregation, improve our understanding of residential choice, and illustrate the importance of political polarization for economic decision-making.

Suggested Citation

  • W. Ben McCartney & John Orellana & Calvin Zhang, 2021. "“Sort Selling”: Political Polarization and Residential Choice," Working Papers 21-14, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:93604
    DOI: 10.21799/frbp.wp.2021.14
    as

    Download full text from publisher

    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/working-papers/2021/wp21-14.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.21799/frbp.wp.2021.14?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    2. Bayer, Patrick & Fang, Hanming & McMillan, Robert, 2014. "Separate when equal? Racial inequality and residential segregation," Journal of Urban Economics, Elsevier, vol. 82(C), pages 32-48.
    3. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1150-1196, December.
    4. Maarten Meeuwis & Jonathan A. Parker & Antoinette Schoar & Duncan Simester, 2022. "Belief Disagreement and Portfolio Choice," Journal of Finance, American Finance Association, vol. 77(6), pages 3191-3247, December.
    5. Martin, Gregory J. & Webster, Steven W., 2020. "Does residential sorting explain geographic polarization?," Political Science Research and Methods, Cambridge University Press, vol. 8(2), pages 215-231, April.
    6. Bayer, Patrick & McMillan, Robert, 2012. "Tiebout sorting and neighborhood stratification," Journal of Public Economics, Elsevier, vol. 96(11), pages 1129-1143.
    7. Jan K. Brueckner & Stuart S. Rosenthal, 2009. "Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns Be Rich?," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 725-743, November.
    8. Edward L. Glaeser & Bryce A. Ward, 2006. "Myths and Realities of American Political Geography," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 119-144, Spring.
    9. Elisabeth Kempf & Margarita Tsoutsoura, 2021. "Partisan Professionals: Evidence from Credit Rating Analysts," Journal of Finance, American Finance Association, vol. 76(6), pages 2805-2856, December.
    10. Bayer, Patrick & McMillan, Robert & Rueben, Kim S., 2004. "What drives racial segregation? New evidence using Census microdata," Journal of Urban Economics, Elsevier, vol. 56(3), pages 514-535, November.
    11. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    12. H. Spencer Banzhaf & Randall P. Walsh, 2008. "Do People Vote with Their Feet? An Empirical Test of Tiebout," American Economic Review, American Economic Association, vol. 98(3), pages 843-863, June.
    13. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    14. Robbett, Andrea & Matthews, Peter Hans, 2018. "Partisan bias and expressive voting," Journal of Public Economics, Elsevier, vol. 157(C), pages 107-120.
    15. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2013. "The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets," Journal of Economic Literature, American Economic Association, vol. 51(4), pages 1007-1062, December.
    16. Christopher McConnell & Yotam Margalit & Neil Malhotra & Matthew Levendusky, 2018. "The Economic Consequences of Partisanship in a Polarized Era," American Journal of Political Science, John Wiley & Sons, vol. 62(1), pages 5-18, January.
    17. Shanto Iyengar & Sean J. Westwood, 2015. "Fear and Loathing Across Party Lines: New Evidence on Group Polarization," American Journal of Political Science, John Wiley & Sons, vol. 59(3), pages 690-707, July.
    18. Amine Ouazad & Romain Rancière, 2016. "Credit Standards and Segregation," The Review of Economics and Statistics, MIT Press, vol. 98(5), pages 880-896, December.
    19. Gerber, Alan S. & Huber, Gregory A., 2009. "Partisanship and Economic Behavior: Do Partisan Differences in Economic Forecasts Predict Real Economic Behavior?," American Political Science Review, Cambridge University Press, vol. 103(3), pages 407-426, August.
    20. Samara Klar, 2014. "Partisanship in a Social Setting," American Journal of Political Science, John Wiley & Sons, vol. 58(3), pages 687-704, July.
    21. McGrath, Mary C., 2017. "Economic Behavior and the Partisan Perceptual Screen," Quarterly Journal of Political Science, now publishers, vol. 11(4), pages 363-383, February.
    22. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    23. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
    24. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    25. Stephen Ansolabehere & Jonathan Rodden & James M. Snyder Jr., 2006. "Purple America," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 97-118, Spring.
    26. Leigh Linden & Jonah E. Rockoff, 2008. "Estimates of the Impact of Crime Risk on Property Values from Megan's Laws," American Economic Review, American Economic Association, vol. 98(3), pages 1103-1127, June.
    27. James G. Gimpel & Iris Hui, 2017. "Inadvertent and intentional partisan residential sorting," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 441-468, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    2. Chapelle, Guillaume & Domènech Arumí, Gerard & Gobbi, Paula Eugenia, 2023. "Housing, Neighborhoods and Inequality," CEPR Discussion Papers 17969, C.E.P.R. Discussion Papers.
    3. Nicolai V. Kuminoff & Jaren C. Pope, 2014. "Do “Capitalization Effects” For Public Goods Reveal The Public'S Willingness To Pay?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1227-1250, November.
    4. Zhaohua Zhang & Derrick Robinson & Diane Hite, 2018. "Racial Residential Segregation: Measuring Location Choice Attributes of Environmental Quality and Self-Segregation," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    5. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1047-1120, Elsevier.
    6. Baum-Snow, Nathaniel & Ferreira, Fernando, 2015. "Causal Inference in Urban and Regional Economics," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 3-68, Elsevier.
    7. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2010. "The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation," NBER Working Papers 16349, National Bureau of Economic Research, Inc.
    8. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2013. "The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets," Journal of Economic Literature, American Economic Association, vol. 51(4), pages 1007-1062, December.
    9. Kuminoff, Nicolai V. & Mathes, Sophie M., 2024. "Residential sorting, local environments, and human capital," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    10. Grodecka, Anna & Hull, Isaiah, 2019. "The Impact of Local Taxes and Public Services on Property Values," Working Paper Series 374, Sveriges Riksbank (Central Bank of Sweden).
    11. Bishop, Kelly C. & Kuminoff, Nicolai V. & Mathes, Sophie M. & Murphy, Alvin D., 2024. "The marginal cost of mortality risk reduction: Evidence from housing markets," Journal of Urban Economics, Elsevier, vol. 139(C).
    12. Christoph Basten & Maximilian von Ehrlich & Andrea Lassmann, 2014. "Income Taxes, Sorting, and the Costs of Housing," KOF Working papers 14-362, KOF Swiss Economic Institute, ETH Zurich.
    13. Xuan Huang & Bruno Lanz, 2018. "The Value of Air Quality in Chinese Cities: Evidence from Labor and Property Market Outcomes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(4), pages 849-874, December.
    14. Albouy, David & Lue, Bert, 2015. "Driving to opportunity: Local rents, wages, commuting, and sub-metropolitan quality of life," Journal of Urban Economics, Elsevier, vol. 89(C), pages 74-92.
    15. Isaiah Hull & Anna Grodecka-Messi, 2022. "Measuring the Impact of Taxes and Public Services on Property Values: A Double Machine Learning Approach," Papers 2203.14751, arXiv.org.
    16. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc.
    17. Yong Chen & David J. Lewis & Bruce Weber, 2016. "Conservation Land Amenities And Regional Economies: A Postmatching Difference-In-Differences Analysis Of The Northwest Forest Plan," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 373-394, June.
    18. Christoph Basten & Maximilian Ehrlich & Andrea Lassmann, 2017. "Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland," Economic Journal, Royal Economic Society, vol. 0(601), pages 653-687, May.
    19. Jeffrey P. Cohen & Cletus C. Coughlin & Jonas C. Crews & Stephen L. Ross, 2020. "The Closing of a Major Airport: Immediate and Longer-Term Housing Market Effects," Working Papers 2020-001, Federal Reserve Bank of St. Louis, revised 19 Jan 2021.
    20. Elster, Yael & Zussman, Noam, 2024. "Minorities and property values: Evidence from residential buildings in Israel," Journal of Urban Economics, Elsevier, vol. 141(C).

    More about this item

    Keywords

    Political Polarization; Residential Choice;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedpwp:93604. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Beth Paul (email available below). General contact details of provider: https://edirc.repec.org/data/frbphus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.