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Demographic Preferences and Income Segregation
We study how preferences over the demographic composition of co-patrons affects income segregation in shared spaces. To distinguish demographic preferences from tastes for other venue attributes, we study venue choices within business chains. We find two notable regularities: preferences for high-income co-patrons are similar across racial groups, and racial homophily does not vary by income. These demographic preferences are economically large, explain much of the cross-group variation in exposure to high-income co-patrons, and correlate with movers‘ neighborhood choices.
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