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447793

793QuillianAmerican Sociological Review


2012
ASR77310.1177/0003122412447

American Sociological Review

Segregation and Poverty 77(3) 354­–379


© American Sociological
Association 2012
Concentration:  The Role of DOI: 10.1177/0003122412447793
http://asr.sagepub.com

Three Segregations

Lincoln Quilliana

Abstract
A key argument of Massey and Denton’s (1993) American Apartheid is that racial residential
segregation and non-white group poverty rates combine interactively to produce spatially
concentrated poverty. Despite a compelling theoretical rationale, empirical tests of this
proposition have been negative or mixed. This article develops a formal decomposition
model that expands Massey’s model of how segregation, group poverty rates, and other
spatial conditions combine to form concentrated poverty. The revised decomposition model
allows for income effects on cross-race neighborhood residence and interactive combinations
of multiple spatial conditions in the formation of concentrated poverty. Applying the
model to data reveals that racial segregation and income segregation within race contribute
importantly to poverty concentration, as Massey argued. Almost equally important for poverty
concentration, however, is the disproportionate poverty of blacks’ and Hispanics’ other-race
neighbors. It is thus more accurate to describe concentrated poverty in minority communities
as resulting from three segregations: racial segregation, poverty-status segregation within race,
and segregation from high- and middle-income members of other racial groups. The missing
interaction Massey expected in empirical tests can be found with proper accounting for the
factors in the expanded model.

Keywords
neighborhoods, poverty concentration, racial inequality, segregation

“Because of racial segregation, a significant In the United States, a notable difference


share of black America is condemned to in the typical lives of whites, blacks, and His-
experience a social environment where pov- panics is the economic class of the people in
erty and joblessness are the norm, where a their social environments. White middle-class
majority of children are born out of wed- families overwhelmingly live in middle-class
lock, where most families are on welfare, neighborhoods and send their children to
where educational failure prevails, and
where social and physical deterioration
a
abound. Through prolonged exposure to Northwestern University
such an environment, black chances for
Corresponding Author:
social and economic success are drastically Lincoln Quillian, Department of Sociology, 1810
reduced.” – Massey and Denton, American Chicago Avenue, Evanston, IL 60208-1330
Apartheid, p. 2 E-mail: l-quillian@northwestern.edu
Quillian 355

middle-class schools. Many black and His- empirical support. At the center of this debate
panic middle-class parents, however, live in is Massey’s (1990) core point that segregation
working-class or poor neighborhoods and and minority poverty rates interact, or inten-
send their children to high-poverty schools. sify in combination, to produce concentrated
About one in three poor white families live in poverty. Jargowsky (1997), however, found no
poor neighborhoods and send their children to evidence of an interactive effect in his analysis
high-poverty schools, compared to two in of data on U.S. cities. Massey and Fischer’s
three poor black and Hispanic families.1 (2000) response and reanalysis found some
Much evidence indicates that the socioec- support for an interaction but also many nega-
onomic levels of residential neighborhoods tive results, despite efforts to account for
and schools affect quality of life and life potential methodological problems. How can
chances. Concentrated disadvantage in neigh- we account for this discrepancy between Mas-
borhoods is one of the most durable predic- sey’s compelling theoretical model and the
tors of high rates of violent crime, and much failure of its key prediction to hold in data?
of the racial gap in exposure to violence is This article develops a new model of how
explained by differences in neighborhood dis- racial segregation combines with other spatial
advantage (Peterson and Krivo 2005). Samp- and demographic conditions to produce con-
son and Wilson (1995) argue that high-poverty centrated poverty among minority groups.
environments are criminogenic, encouraging Massey’s theory emphasizes two forms of
youth to pursue criminal rather than legiti- segregation—racial segregation and segrega-
mate careers. Spatial separation of the afflu- tion of the poor within race—as key causes of
ent and the poor produces spatial mismatch poverty concentration. The decomposition
between the demand for jobs and job seekers, model developed here reveals that to better
contributing to high unemployment in poorer account for concentrated poverty, we must
neighborhoods (Kain 1968; Kasarda 1995; include a third form of segregation: the segre-
Mouw 2000). Likewise, high-poverty schools gation of high- and middle-income members
tend to be ineffective and have disproportion- of other racial groups from blacks and His-
ately high dropout rates (Orfield and Lee panics. Blacks’ and Hispanics’ other-race
2005; Rhumburger and Palardy 2005). Racial neighbors are disproportionately impover-
gaps in the affluence of neighborhood and ished, a factor that contributes to these groups
school environments contribute importantly high contact with neighborhood poverty. The
to persistent racial inequalities. revised model validates Massey’s core argu-
In their seminal book, American Apart- ments regarding the importance of segrega-
heid, Douglas Massey and Nancy Denton tion, expands his model to include other
argue that the concentration of poverty in important substantive conditions that concen-
black and Latino neighborhoods is the most trate poverty, and explains the anomaly of the
pernicious consequence of contemporary missing interaction as a result of these omit-
racial residential segregation.2 In their ted conditions.
account, concentration of poverty in minority
communities is due to high levels of racial
segregation and racial gaps in poverty rates, Background
combined with some segregation of the poor Two perspectives on the causes of concen-
from the nonpoor within race. They develop trated poverty in U.S. cities have dominated
this argument through a series of simulation sociology. First are Wilson’s theories about
models and confirm it through an empirical the confluence of central city deindustrializa-
analysis of segregation, group poverty rates, tion and class-specific migration patterns
and poverty concentration in U.S. cities. among African Americans (Wilson 1987,
Their theory is primae facie compelling, 1996). Second are Massey and Denton’s theo-
but there has been controversy regarding its ries emphasizing the importance of racial
356 American Sociological Review 77(3)

residential segregation (Massey and Denton and Wilson’s arguments about the deleterious
1993). While these theories are not exhaus- consequences of concentrated poverty. Mas-
tive of factors influencing concentrated pov- sey disagrees with Wilson on two major
erty, Wilson’s and Massey’s perspectives points, one general and one specific. The gen-
provide the major sociological accounts of eral disagreement is that Wilson overlooks the
poverty concentration and its growth in U.S. importance of continuing racial segregation,
cities since the 1970s. which concentrates the effect of changing
Wilson’s theory of the causes of concen- economic conditions on black and Hispanic
trated poverty is part of his broader discus- neighborhoods. Without racial segregation as
sion of the creation of the urban underclass, a persistent and actively maintained condition,
which includes poverty concentration as a Massey argues deindustrialization would not
key component (Wilson 1987, 1996). Wilson have had such devastating effects on minority
argues that a series of historical changes pro- neighborhoods, and few neighborhoods would
duced poverty concentration in minority com- experience extremes of poverty concentration.
munities in urban areas in the 1970s and Massey’s specific disagreement with Wilson
1980s. The primary condition he emphasizes is that he suggests black middle-class out-
is the deindustrialization of urban cores and migration did not occur, or at least not to any
changes in the skill requirements of urban significant extent (see Massey, Gross, and
jobs, which produced spatial and skill mis- Shibuya 1994). Correspondingly, Massey
matches of blue-collar inner-city workers finds that racial residential segregation per-
with new urban economies based on services. sists at high levels for African Americans
The result was a surge in unemployment and regardless of income (Massey and Denton
poverty rates in working-class minority 1993; Massey and Fischer 1999).
neighborhoods. Wilson also suggests that Massey’s theory of racial segregation and
with declines in legalized segregation, mid- poor neighborhood formation is based on
dle-class blacks increasingly moved away population dynamics of segregation in the
from black neighborhoods and into white context of racial inequality in poverty rates.
neighborhoods, leaving behind poorer blacks. The core idea is simple: racial segregation
These two historical changes provide the separates high-poverty racial groups from
main pillars of Wilson’s theory of the rise in low-poverty racial groups. The result of this
concentrated poverty. His wide-ranging dis- separation is that poverty is concentrated in
cussion also encompasses several other pro- communities of high-poverty racial groups
cesses, including the declining prevalence of while low-poverty racial groups are shielded
two-parent families and dysfunctional cul- from poverty contact. By adding some degree
tural responses resulting from concentrated of poverty-status segregation within race,
unemployment. In Wilson’s account, these poverty is further concentrated, producing
processes in the 1970s and 1980s led to high neighborhood poverty contact for the
neighborhoods with low rates of employ- poor of high-poverty racial groups.
ment, high rates of poverty, and correspond- Massey illustrates this theory through a
ingly high levels of social problems. series of simple simulations of hypothetical
Massey and Denton’s (1993) theory of cities with identical demographic profiles
poverty concentration responds to and builds except for the level of segregation (first pub-
from Wilson’s theory. Although Wilson’s and lished in Massey [1990] and later reproduced
Massey’s disagreements have attracted much with small modifications in chapter 5 of
attention, they agree on many points. Massey American Apartheid). Neighborhoods are
accepts Wilson’s central contention that represented as 16 boxes within a larger square
deindustrialization and growing joblessness have that represents a city. The city has only black
been key factors driving the increasing con- and white residents. The black population of
centration of poverty in minority communities each city has a 20 percent poverty rate and the
Quillian 357

white population a 10 percent poverty rate. Wilson describes how desegregation can
Massey shows that as segregation increases increase poverty concentration if movement
across four hypothetical cities, the level of into white neighborhoods occurs primarily
neighborhood poverty contact for blacks among middle-class blacks, leaving poorer
increases sharply, while it decreases for blacks segregated by race and class. By con-
whites. Adding poverty-status segregation trast, Massey describes desegregation as
within race to the simulation further increases occurring equally over income levels, thus
average poverty contact for the black poor, reducing poverty concentration by mixing
resulting in highly concentrated poverty in lower-poverty racial groups (whites and
some black neighborhoods. Asians) with higher-poverty racial groups
These simulations illustrate that segrega- (blacks and Hispanics). As this contrast
tion matters more for poverty concentration reveals, segregation’s effect on poverty con-
as the segregated non-white group’s poverty centration depends on possible patterns of
rate increases, and changes in non-white pov- class-selectivity in processes of segregation
erty rates translate more strongly into neighbor- or desegregation. Wilson and Massey come to
hood poverty in more segregated metropolitan opposite conclusions about the poverty-con-
areas. In statistical terms, this represents an centrating effects of desegregation because
interaction: segregation and group poverty they make different assumptions about class-
intensify each other’s effects in producing selectivity in desegregation processes.
spatially concentrated poverty in minority
communities.
Massey argues it is the interactive combi- Empirical Studies
nation of segregation and racial group pov- Interaction of Racial Segregation and
erty disparities that explains why most of the Group Poverty Rates
processes that Wilson emphasized would
have much less impact on concentrating pov- To provide empirical support for Massey’s
erty were it not for racial segregation. The model of the importance of racial segregation
disproportionate impact of deindustrialization in concentrating poverty, Massey and col-
on working-class minority workers became a leagues focused on the idea that an interactive
disproportionate impact on working-class combination of segregation and poverty rates
minority neighborhoods because of segrega- produces concentrated poverty in minority
tion. This produced the double-disadvantage communities. Using data from decennial cen-
of personal and contextual poverty for many suses with large metropolitan areas as units of
poor blacks and Hispanics. Massey also notes analysis, Massey and Eggers (1990) found a
that a recession that increases minority pov- significant interaction of race group poverty
erty rates in a segregated city can begin a rates and racial segregation in regression
downward economic spiral in which demand models predicting levels of metropolitan
for local businesses declines, which harms neighborhood poverty concentration. They
neighborhood residents, which then poten- conclude that their model is supported and
tially harms local businesses further. The net that “segregation is the key factor accounting
result of these processes is that black and for variation in the concentration of poverty”
Hispanic “chances for social and economic (p. 1183). A few years later, Massey and
success are drastically reduced” (Massey and Denton (1993) presented many of these argu-
Denton 1993:2). ments as central conclusions of American
Massey and Wilson’s disagreement about Apartheid.
black middle-class out-migration is linked to This conclusion, however, would soon be
their debates about the role of segregation in challenged. Published shortly after Wilson’s
neighborhood poverty concentration. In his and Massey’s initial statements, Jargowsky’s
theory of black middle-class out-migration, (1997) Poverty and Place was an influential
358 American Sociological Review 77(3)

empirical analysis of many of Wilson’s and subtle to be demonstrated with the available
Massey’s ideas. Jargowsky found some evi- data” (p. 183; see also Korenman, Sjaastad,
dence for and against Massey’s and Wilson’s and Jargowsky 1995).
specific hypotheses, but overall, he provides The final salvo in this debate is from Mas-
more support for Wilson’s perspective. In sey and Fischer (2000), who present a revised
particular, he found that metropolitan oppor- analysis of interactions between segregation
tunity structure—the average level of income and group poverty rates in response to Jar-
or poverty—is by far the best predictor of gowsky. Recognizing that low variation in the
metropolitan neighborhood poverty concen- extent of segregation across metropolitan
tration. His results contradict Massey’s key areas can contribute to multicollinearity prob-
point about an interaction between racial seg- lems, they increase variation by treating
regation and measures of the opportunity whites, blacks, Latinos, and Asians of each
structure (including measures of group pov- metropolitan area as separate cases, using seg-
erty rates). That is, he finds no tendency for regation measures computed between each
concentrated poverty rates to be especially group and whites. Each group-by-metropoli-
elevated in metropolitan areas in which racial tan case is assigned to one of four segregation
segregation and high group poverty rates are categories based on its level of segregation
combined, contradicting Massey’s key pre- from whites: zero, low, moderate, and high.4
diction that these conditions combine interac- Massey and Fischer estimate models sepa-
tively to concentrate poverty. rately for the four categories, then compare
Jargowsky’s (1997) analysis parallels Mas- coefficients across models and look for inter-
sey and Eggers’s (1990) earlier test of their action as indicated by sharper slopes in higher-
model in most respects. Like Massey and Egg- segregation metropolitan-group combinations.
ers, Jargowsky models metropolitan poverty This ingenious procedure substantially
concentration as a function of various metro- increases the variation in segregation, reduc-
politan factors, including race group poverty ing the severity of multicollinearity problems.
rates and racial segregation, allowing for their In a shift from the specification of Massey
interaction. Unlike Massey and Eggers, how- and Eggers (1990), Massey and Fischer
ever, he includes the main effects of segrega- (2000) use several measures of racial group
tion and group poverty rates together with their income levels (mean income, inequality, and
interaction in the same model; Massey and a class sorting index) rather than measures of
Eggers present only the interaction without the group poverty rates. They hypothesize inter-
main effects, contrary to standard statistical actions among each of these measures of
practice. Massey and Eggers (1990:1183) jus- group income and segregation.5 Because
tify this choice as a result of “multicollinearity there are four categories of segregation and
among the regressors”—that is, because the several measures of group income, many
segregation measure and minority poverty rate potential sets of coefficients can be examined
are highly correlated with the interaction term for consistency with their expectation of
that is the product of these two variables, interactions between the group income meas-
which makes it impossible to precisely esti- ures and segregation. In their text, Massey
mate their separate effects with the interaction and Fischer highlight coefficients that show
term. Jargowsky argues that this is needed to stronger effects of measures of group income
avoid the possibility that the interaction is just level on rate of concentrated neighborhood
capturing a main effect. With main effects of poverty as segregation increases, concluding
level of segregation included, none of the there is support for Massey’s underlying
interactions are statistically significant tested model of interaction of group income and
separately or jointly.3 He concludes that Mas- segregation in forming concentrated poverty.
sey and Eggers results are in error: “the [inter- Yet a careful reading of their tables also
action] effect either does not exist or is too shows that many of the coefficients fail to
Quillian 359

correspond to Massey’s prediction of interac- Crowder and South (2005) found no increases
tion. Their expectation of interaction between in rates of migration into white neighborhoods
segregation and the income measures sug- in the 1970s (see also Pattillo-McCoy 2000).
gests the group income variables’ largest Several differences in the questions addressed
coefficients should be found in the model and methods used by these studies may explain
estimated over highly segregated metropoli- these differences. As relevant for understand-
tan areas, with coefficients becoming pro- ing racial segregation effects, however, stud-
gressively smaller as segregation decreases. ies agree that affluent blacks remain only a bit
Of the 15 sets of coefficients they present, less segregated from whites than are less afflu-
only one has the largest coefficient in the high ent blacks (Massey and Denton 1993; Massey
segregation category and coefficients declin- and Fischer 1999; but see also Alba, Logan,
ing to the smallest in the zero segregation and Stults 2000). This is consistent with
category, as predicted by the idea of interac- Massey’s assumption that segregation and
tive effects among these variables.6 Only desegregation are processes that occur equally
about half of the paired contrasts (e.g., high across all income groups.
versus medium segregation) work out in the
correct direction. This is about the number we
would expect by chance if there were no Revising the Massey
interaction.7 Despite their efforts to support Model
their key hypothesis and their use of a clever Limits of Massey’s Analysis
procedure to increase variation in segrega-
tion, a close reading of Massey and Fischer’s In light of Massey and Denton’s convincing
tables actually provides much evidence that theoretical arguments and Massey’s simula-
contradicts their claim of interaction of segre- tions, results contradicting the presence of an
gation and group income level in forming interaction of segregation and group poverty
spatially concentrated poverty. Indeed, Mas- rates are puzzling. Indeed, even Jargowsky
sey and Fischer seem to recognize (but do not (1997:183) acknowledges that “the interac-
emphasize) the mixed nature of their results, tion is logical conceptually and theoretically.”
suggesting that historical changes may The real question is: the theoretical rationale
explain the lack of interaction in the later is compelling, so why does this interaction
years of their analysis. effect not appear in data as theory predicts?
Multicollinearity was the initial suggestion,
but this possibility seems unlikely in light of
Middle-Class Black Out-Migration
the various procedures Jargowsky (1997) and
Wilson’s theory of middle-class black out- Massey and Fischer (2000) use to deal with
migration claims that more affluent blacks this problem, with little change in their results.
have moved into white neighborhoods, leav- On initial consideration, it is difficult to
ing behind poorer blacks and contributing to imagine how Massey’s model of segregation
an increase in concentrated poverty. In and poverty concentration could be wrong. A
response, Massey’s analyses of census and major appeal of Massey’s conceptual model
longitudinal data lead him to conclude that is that it spells out an invariate population
black middle-class out-migration never hap- process: segregation between groups with
pened on any significant scale (Massey et al. unequal poverty rates must concentrate pov-
1994). Several later studies have investigated erty for the higher-poverty group regardless
Wilson’s black middle-class out-migration of the other characteristics of individuals or
thesis with varied conclusions. Quillian (1999) neighborhoods.
found evidence suggesting out-migration pro- Yet, a close inspection of Massey’s simula-
duced increasing spatial separation between tion model shows it builds in some subtle
poor and nonpoor blacks without lasting racial substantive assumptions regarding spatial
desegregation because of white flight, while patterning of race and poverty status. His
360 American Sociological Review 77(3)

neighborhood-box simulation allows for race To develop a formal model requires meas-
segregation and income segregation within ures of the main outcome and inputs in the
race, but not for the possibility that processes Massey model. The main outcome is poverty
of segregation might be income-selective. For concentration for the focal racial group: blacks
instance, Massey excludes the possibility that or Hispanics in this analysis. The main inputs
black residents of white neighborhoods might are the focal race group’s racial segregation
be especially likely to be nonpoor. Massey’s from others, poverty rates for the focal racial
model also excludes the possibility that group and others, and poverty-status segrega-
whites’ income affects their potential contact tion within groups. Another input is relative
with blacks. But if either of these assumptions sizes of racial groups in a city, although in Mas-
are incorrect, income-selective patterns of sey’s simulations, the proportion of blacks and
segregation-desegregation could make deseg- whites are held equal and thus not explicitly
regation operate more like Wilson hypothe- discussed. To match real data, however, we
sized, that is, it increases rather than decreases must allow relative group size to vary. As dis-
poverty concentration. cussed earlier, Massey implicitly assumes that
Massey and colleagues also assume that income levels do not affect patterns of cross-
other spatial conditions, like group size and race contact. To the extent this assumption does
the level of within-race poverty-status segre- not hold, we must build this into the model to
gation, have additive and linear effects on represent the real situation of U.S. cities.
poverty concentration. This assumption is The following describes the parameters of
most evident in the regressions Massey and the model in more detail and how I derived
colleagues use to test the theory (Massey and the formal model. This section necessarily
Eggers 1990; Massey and Fischer 2000). In relies on equations. Readers who wish to skip
these regressions, spatial conditions, like per- the formal details of the model can go to the
centage of the metropolitan area that is black beginning of the next section, which dis-
and poverty-status segregation, are used as cusses the interpretation and implications of
regression controls and represented as addi- the formal model.
tive predictors. Yet relative group size should
interact with segregation in affecting contact, Measuring inputs and outputs of the
suggesting interactive rather than additive Massey model. I measure poverty concentra-
combinations among conditions. A model that tion using the P* index, computed with
allows for multiple interactions will be more group-poor contact with poor persons (of any
complicated but will more accurately capture race). Group-poor are poor members of the focal
the dynamic way these forces combine. race group. This index varies from 0 to 1 and
can be interpreted as the proportion poor in the
average census tract of a poor member of a
A Formal Model of Segregation and
group for the metropolitan area for which it is
Poverty Concentration
computed. Following Lieberson and Carter
Massey’s arguments implied a mathematically (1982), I write the group for whom contact is
necessary relationship between segregation, computed in subscripts to the left of P*, the
group poverty rates, and poverty concentra- group with whom they are in contact in sub-
tion. But rather than demonstrate this through scripts to the right; and contact of a poor member
a formal demographic model, he illustrated of the focal group (group poor) with poor of any
how it worked in a hypothetical city repre- race is denoted gpP*p. This is the same index of
sented as a simulation. A formal model has the poverty concentration used by Massey and col-
advantage of allowing us to derive exactly leagues in their empirical work (Massey and
how these population quantities must relate to Eggers 1990; Massey and Fischer 2000).
each other, discerning relations that may be In the model, segregation is indicated by
hidden or vaguely understood from a simula- the variance ratio index of segregation. Past
tion like Massey employed. analyses of segregation, including Massey
Quillian 361

(1990), most often use the index of dissimi- For instance, the average neighborhood
larity to assess segregation. Using the dis- poverty rate for poor Hispanic residents of
similarity index would maintain convention, Chicago (i.e., the concentration of Hispanic
but it is not well-suited for use with the P* poverty) is .197; this is the sum of the aver-
measure of contact, because the dissimilarity age proportion of their neighbors’ Hispanic
index and P* have different mathematical and poor (.133) and the average proportion
bases. The variance ratio index is in the same non-Hispanic and poor (.064). Contact with
family of measures as the exposure index; its own-group poor and other-race poor will be
use maintains conceptual consistency in differentially affected by segregation between
measurement and facilitates a formal analysis group g and persons not in group g (ng).
because it has a straightforward connection We can add segregation, as well as related
with P* contact measures.8 The variance ratio measures that capture forms of cross-race
index of segregation (V ) is related to the P* poverty contact and poverty-status effects on
contact index by the relation: own-race contact, using ratios of P* indexes
related to these different forms of contact:
g P *ng = png (1 − V( g )( ng ) ) (1)
 gp P *g   gp P *gp 
where png is the proportion of the population gp P * p = g P *g   
 g P *g   gp P *g 
that is nongroup (i.e., not in the gth group or
other-race), and V(g)(ng) is the variance ratio  g P *ngp   gp P *ngp 
index of segregation between the group of + g P *ng   
 g P *ng   g P *ngp  (3)
interest and nongroup persons (or other-race
persons). Like the index of dissimilarity, the
variance ratio index varies from 0 to 1 and has Multiplying out these terms returns to
good formal properties as a measure of seg- Equation 2. Equation 3 adds measures of
regation (James and Taeuber 1985). The Ap- contact with own and other races, which get
pendix shows formulas for P* and V. closer to isolating a segregation effect, and
measures of effects of poverty status on con-
A formal model. In developing a formal tact with own-group (gpP*g) and other groups
model to represent Massey’s simulation, we (gpP*ng). In addition, Equation 3 includes
want to express the outcome of group-poor measures of poverty-status effects on contact
contact with poor (gpP*p) as a function of the with own-group poor (gpP*g) and other-group
key parts of Massey’s model: racial segrega- poor (gpP*ngp).
tion, poverty-status segregation within race, Using the fact that gP*ng = 1– ngP*g and
group poverty rates, and other distinct and doing some algebra allows us to separate out
interpretable demographic conditions that are group poverty rates, which are a key element
important for poverty concentration. In bring- of Massey’s model, and also provides terms
ing segregation into the model, a useful that are more interpretable:
property of the P* index is that it is additively
decomposable into contact with subgroups.
Total poverty contact for poor members of a  g P *gp 
racial group in a metropolitan area is the sum  g P*g 
 gp P *gp 
of contact with poor members of their own gp P * p = (1 − g P *ng ) Pov g   
 Pov g   g P *gp 
group (gp) and poor persons not of their own  
racial or ethnic group (ngp):  g P *ngp 
 g P *ng 
 gp P *ngp 
+ g P *ng Povng   
 Pov   g P *ngp 
P *p = P *gp + gp P *ngp
ng
gp gp (2)  
362 American Sociological Review 77(3)

I then substitute the segregation measure in within race for a group and is present in
place of the own-race and other-race contact Massey’s model (gp → gp).
measures (by using the substitution shown in
Equation 1) and rearrange: GxNGP: A ratio indicating poverty dispropor-
tionality among group members’ other-race
 P*   gp P *gp  neighbors. If this component is greater than
P * p = Pov g  gp g  +
gp
 g P * g   g P *gp  one, then group members’ other-race neigh-
bors are more likely to be poor than the oth-
  g P *ngp 
 er-race average (g → ngp).
 g P *ng 
 gp P *ngp 
png (1 − V( g )( ng ) )  Povng   
  Povng   g P *ngp  GPxNGP: A ratio indicating poverty dispropor-
  
tionality among poor group members’ other-
 g P *gp   race neighbors. If this component is greater
 g P*g 
 gp P *gp   than one, then poor group members tend to
− Pov g   
 Pov g   g P *gp   have poorer other-race neighbors than the
   (4) average for all group members (gp → ngp).

Each part of this formula has an interpret- A value of one for these four components
able meaning. Renaming component parts is like no effect or no disproportionality: the
from Equation 4 gives the final component term multiplies out of the decomposition. For
formula: instance, a one on GPxG indicates that poor
group members are no more likely than other
gp P * p = Pov g (GPxG )(GPxGP ) + group members to have own-group neigh-
bors. Of these components, only GPxGP is
png (1 − V( g )( ng ) )  Povng (GxNGP )(GPxNGP )
represented in Massey and colleagues’ mod-
− Pov g (GPxG )(GPxGP ) (5) els or explicitly discussed in his simulations.
GPxGP can be interpreted as a measure of
This final decomposition shows how group- poverty-status segregation within race, simi-
poor contact with poor is related to several con- lar in concept to the index of dissimilarity
ditions. Poverty concentration is determined by between poor and nonpoor.
the group poverty rate (Povg), the other-race To help understand how this model oper-
(nongroup) poverty rate (Povng), segregation ates, consider blacks in the Chicago metro-
group/other-race (V ), relative group size ( png), politan area. The average neighborhood
and four additional components: poverty rate for a poor black resident of Chi-
cago is 34.6 percent (gpP*p = .346). This is the
GPxG: A ratio indicating own-group dispropor- measure of black poverty concentration for
tionality among the group poor’s neighbors. Chicago and the outcome we seek to under-
If this component is greater than one, poor stand. Inputs for Chicago include blacks’ seg-
group members have proportionately more regation from other-race persons, V(g)(ng) =
own-group neighbors than the average for .667; the poverty rate of Chicago’s black
their group (gp → g). This captures any population, 24.6 percent (Povg = .246); the
poverty-status effect on own-group contact. poverty rate of Chicago’s non-black popula-
tion, 7.3 percent (Povng = .073); and the per-
GPxGP: A ratio indicating poverty dispropor- centage of the population that is not black in
tionately among the group poor’s own-race the Chicago metropolitan area, 81.4 percent
neighbors. If this component is greater than (png = .814). The final inputs are the four dis-
one, then poor group members tend to have proportionality ratios indicating that poor
more poor own-group neighbors than aver- blacks have about 9 percent more black
age for their group. This can be interpreted neighbors than does the black population on
as a measure of poverty-status segregation average (GPxG = 1.09); poor blacks have 49
Quillian 363

percent more poor black neighbors than does segregation and the group’s poverty rate in-
the black population on average (GPxGP = teract, or intensify each other’s effect, in the
1.49, a measure of class segregation); blacks’ production of spatially concentrated poverty.
non-black neighbors are, on average, 66 per- The fact that this multiplication of terms oc-
cent more likely to be poor than the average curs in the decomposition is consistent with
for non-blacks in the Chicago area (GxNGP = the interaction that Massey expected.
1.66); and poor blacks’ non-black neighbors
are 8 percent more likely to be poor than are
Interpretation of the Complete
nonpoor blacks’ non-black neighbors (GPx
Model of Segregation and Poverty
NGP = 1.08).
Concentration
Applying the formula from Equation 5
with the Chicago components, we get the The final decomposition model (Equation 5
following: and, in different form, Equation 6) provides a
way to understand how segregation on the
gp P* p = (.246)(1.09)(1.49) + (.814 ) (1 − .667) basis of race and the focal racial group’s pov-
(.073)(1.66)(1.08) − (.246)(1.09)(1.49) = .326 erty rate combine to produce concentrated
poverty. It is an improved version of Massey’s
This final number is exactly equal to the aver- conceptual model, illustrated clearly in his
age neighborhood poverty rate for poor blacks simulation, that racial segregation, the group
in Chicago (32.6 percent). In fact, we can ex- poverty rate, and poverty-status segregation
actly predict the level of poverty concentra- within race affect the spatial concentration of
tion for any race or ethnic group in any city group poverty. The model shows that to fully
based on these components and this model. specify how segregation and group poverty
We can also use the model to address what rates affect concentrated poverty, we must
effect a change in one set of conditions would introduce other features of the space over
have, holding the other components constant. which these conditions are evaluated. There is
In Chicago, segregation is a particularly im- no error term in the decomposition. With the
portant component. For instance, if black– final model (Equation 5 or 6), we can perfectly
non-black segregation in Chicago were to predict the level of concentrated poverty a
drop to the black mean of .317, holding other group experiences in a metropolitan area as a
conditions constant, black poverty concentra- function of the indicated components.
tion would drop from .326 to .250. From the model, we see that segregation,
To understand the potential role of segre- the group poverty rate, and the extent of
gation and minority poverty rates interacting poverty-status segregation within race affect
to form concentrated poverty, it is helpful to concentrated poverty, as Massey emphasized.
rewrite Equation 5 in a form that multiplies But the connection of these factors to poverty
out some terms: concentration also depends on factors that
Massey implicitly held constant in his simula-
gp P * p = Pov g (GPxG )(GPxGP ) tion model, such as the poverty rate among
+ png Povng (GxNGP )(GPxNGP ) everyone not a member of the segregated
− png Pov g (GPxG )(GPxGP ) group and relative group size. Segregation
(appearing as the 1 – V term in Equation 5)
− pngV( g )( ng ) Povng (GxNGP )(GPxNGP )
interacts (multiplies) with the difference in
+ pngV( g )( ng ) Pov g (GPxG )(GPxGP ) (6) poverty between group and other-race mem-
bers (these terms subtract) rather than with
Note that segregation (V(g)(ng)) multiplied by the raw group poverty rate. This is because
the group’s poverty rate (Povg) appears in the segregation becomes more consequential for
last term. This multiplication indicates that poverty concentration to the extent that group
364 American Sociological Review 77(3)

and other-race members have different pov- poor and nonpoor group members are more
erty rates. Segregation also matters more separated spatially, increased own-race con-
when other-race persons are a large share of tact (segregation) results in greater poverty
the total population. In effect, the formula is concentration.
translating from segregation to contact, and Other factors weaken segregation’s effect
contact with another group is equal to the on poverty concentration. These factors multi-
product of one minus segregation from the ply with segregation in Equation 6 and are in
other group and relative size of the other terms that are negative in sign. These include
group (White 1986). Neither of these condi- the poverty rate of other-race persons, group
tions had been properly included in past members’ tendency to be in contact with poor
empirical tests of Massey’s model because other-group members, and poor group mem-
past tests assumed additive, linear effects. bers’ likelihood of being in contact with poor
Massey’s simulation omitted consideration other-group members. As these conditions
of how income-selective patterns may affect become stronger, a decrease in segregation
cross-race contact. The decomposition shows increasingly implies that poor group members
this as three terms representing the possibility will swap poor own-group neighbors for poor
that poor group members are especially likely other-group neighbors, producing little or no
to have contact with their own group (GPxG), deconcentration of poverty.
that other-race members who group members Because many factors strengthen or
are in contact with are more (or less) likely to weaken segregation effects, Massey’s point
be poor than the other-race average (GxNGP), about the importance of segregation for pov-
and that poor members of the group are espe- erty concentration in any particular context
cially likely to be in contact with poor other- holds under some, but not all, conditions.
race persons (GPxNGP, effectively cross-race Whether conditions in U.S. cities are right for
income segregation). Massey’s conclusions about the importance
We can now return to Massey’s hypothe- of segregation and its interactive combination
sized interaction between segregation and with group poverty rates is an empirical ques-
poverty concentration. The decomposition tion I consider in the next section.
includes terms in which race segregation and
the group poverty rate multiply. This is con-
sistent with Massey’s expectation of interac- Approach And Data
tions between these conditions in the To better understand the poverty concentra-
production of concentrated poverty. But the tion model and how it may help account for
model also shows that several other conditions the missing interaction Massey’s framework
interact with segregation—that is, several predicted, we need to examine the model in
terms multiply with segregation in the for- light of values the components actually take
mula—strengthening or weakening its effects. on across U.S. cities. My analysis involves
These effects have intuitive explanations. two steps. First, I use data to compute compo-
Strengthening segregation effects are the nents of the decomposition model (shown in
percentage of the population who are other- Equations 5 and 6) and apply these to the
race, the effect of poverty on contact with decomposition to better understand its impli-
one’s own-group, and group poverty-status cations. Second, I use the model of the math-
separation among group members (multiply- ematical relationships among these conditions
ing in the last term of Equation 6). If the to investigate the lack of interaction in the
proportion of the population other-race is basic regression models of Jargowsky (1997)
greater, change in segregation results in and Massey and Fischer (2000).
greater changes in contact with other race I use census tract data from the 2000 Cen-
groups. If the poor have more own-group sus, which are a more recent version of the
contact, the own-group poverty rate matters data used in past studies.9 I computed sum-
more for poverty concentration. And if mary statistics for metropolitan areas with at
Quillian 365

least 20,000 members of the focal racial disproportionality measures. These measures
group, because segregation measures have are the extent to which poor members of the
little meaning when a minority group is very focal race group have more own-group neigh-
small. For simplicity, I focus on cross-sec- bors than do nonpoor members (GPxG), the
tional analysis using the 2000 Census, extent to which group members’ other-race
although I also examined the situation using neighbors are poorer than average for their
change regressions from 1990 to 2000 and group (GxNGP), and the extent to which poor
many similar results hold to those I report group members’ other-race neighbors tend to
here. I also performed the basic analysis in be poorer than average for their group
cross-section with the 1980 Census, which (GPxNGP). Massey’s simulation implicitly
generated identical substantive conclusions assumed no disproportionality, which is like a
(tables available from the author on request). value of 1 in the decomposition. (The fourth
As discussed earlier, I follow Massey and disproportionality measure, GPxGP, repre-
Eggers’s (1990) and Massey and Fischer’s sents poverty-status segregation among group
(2000) empirical studies in using the P* index members and is included in Massey’s simula-
of census tract contact between poor mem- tions.) The disproportionality measures are
bers of the focal racial group and the poor of the top four components in Table 1.
any group to measure group poverty concen- Numbers greater than one in the GPxG row
tration. Poverty is defined as membership in a (the first row) of Table 1 indicate that poor
family with income below the official federal members of non-white groups tend to have
poverty line, which is how it appears as more own-group neighbors than do nonpoor
counts in data on census tracts. To examine group members. If this pattern is strong, it
segregation effects, I use blacks and Hispan- might undercut Massey’s arguments about seg-
ics as focal race groups, because these groups regation and poverty status. But these ratios,
have higher poverty rates than whites and are on average, are between 1.1 and 1.2, not too far
the groups Massey focuses on in his model. off from the poverty-status proportionality
Earlier versions of this article also included (1.0) in contact with own-group members that
results for Asian Americans and pooled Massey’s model implicitly assumed. While
results combining blacks, Hispanics, and poor members of these groups do have more
Asians into one model. These tables are avail- own-group neighbors, on average they have
able from the author on request. only 10 to 20 percent more own-group contact.
For blacks, this is consistent with the long-
standing finding that middle-class blacks have
The Decomposition Model more non-black neighbors than do poor blacks,
Versus the Massey Model but not many more (Massey and Denton 1993;
How Well Do the Massey Model’s Massey and Fischer 1999).
Implicit Assumptions Hold? By contrast, numbers in the GxNGP row
(third row) indicate that blacks’ and Hispan-
Massey’s simulations assume income does ics’ other-race neighbors are significantly
not influence racial segregation: that is, he more likely to be poor than the other-race
assumes the poverty rate of blacks living in average. The values are 1.549 and 1.366 for
white neighborhoods is equal to blacks’ over- blacks and Hispanics, respectively. This is
all rate, and that of whites living in black inconsistent with Massey’s assumption that
neighborhoods is equal to the overall white income does not affect cross-race contact.
rate. A key difference of the decomposition Because contact with other-race neighbors
model from Massey’s model is that it drops tends to be with disproportionately impover-
this assumption. ished persons, this weakens desegregation’s
In the decomposition, income effects on potential to reduce black and Hispanic pov-
cross-race contact are represented with three erty contact, and thus the segregation effect.
366 American Sociological Review 77(3)

Table 1. Metropolitan Means and Standard Deviations of Components of Neighborhood Poor


Contact Decomposition by Group

Variable Black Hispanic


Disproportionality Measures
GPxG: own-group disproportionality in neighbors of 1.127 1.160
group poor (gp ≥ g) (.075) (.107)
GPxGP: poverty disproportionality in own-race neighbors of 1.388 1.419
group poor (gp ≥ gp) (.214) (.215)
GxNGP: poverty disproportionality in other-race neighbors of 1.549 1.366
group (g ≥ ngp) (.377) (.348)
GPxNGP: poverty disproportionality in other-race neighbors of 1.136 1.199
group poor (gp ≥ ngp) (.132) (.129)

Other Components
Segregation Group/Not Group (V(g)(ng)) .317 .158
(.153) (.097)
Group Poverty Rate (Povg) .254 .221
(.062) (.063)
Nongroup Poverty Rate (Povng) .095 .100
(.031) (.033)
Percentage Not Group (png) .830 .811
(.109) (.181)

N (Metropolitan Areas) 166 144

Note: Standard deviations are in parentheses.

Whether this may account for the lack of other-race members, group members’ poverty
interaction remains to be seen, but Massey’s rate, other-race members’ poverty rate, and
discussion of poverty concentration does not the percentage of metropolitan residents who
account for this condition. are other-race. Segregation is measured by
Factor GPxNGP indicates the extent to the variance ratio index of segregation
which poor members of non-white groups are between each group (black or Hispanic) and
especially likely to have poor other-race the nongroup (everyone else).10
neighbors; this is segregation on the basis of Results show that blacks and Hispanics
poverty status between members of different have somewhat similar spatial patterns with
race groups. The means for blacks and His- regard to poverty concentration, except for
panics are 1.136 and 1.199, respectively, the important distinction that blacks are much
which indicate that poor group members are more segregated from other groups than are
more likely than nonpoor members to have Hispanics. For blacks and Hispanics, poverty
poor other-race neighbors, but this parameter status matters for poverty concentration
is not far from Massey’s implicit assumption because it affects own-group neighbors’ pov-
of 1.0 (or no difference) in his simulations. erty status, but it has little effect on the pro-
The final component, GPxGP, is shown in pensity toward other-race contact or other-race
row two of Table 1. This indicates poverty- neighbors’ poverty rate.
status segregation within racial groups, which
exists for all groups (ratios greater than one).
The Role of Contact with Other-Race
Income segregation within race was built into
Poor in Poverty Concentration
Massey’s simulation.
The bottom of Table 1 shows all other How important are the conditions omitted
components of the decomposition model. from Massey’s simulations for understanding
These include the extent of segregation from population concentration in U.S. cities? To
Quillian 367

Table 2. Changes in Group Concentrated Poverty with Change in Spatial Conditions

Black Hispanic
Base Poverty Concentration Level (gpP*p) .267 .227
(poverty concentration level from decomposition  
at means of all components)

  Change in Poverty Concentration with 1 SD Decrease


Component (percentage change from base below absolute change)

Segregation Group/Not Group (V(g)(ng)) −.029 −.016


−11.0% −6.9%
GPxG: own-group disproportionality in −.011 −.011
neighbors of group poor (gp ≥ g) −4.3% −4.7%
GPxGP (poverty segregation within race): −.027 −.018
poverty disproportionality in own-race −9.9% −7.7%
neighbors of group poor (gp ≥ gp)
GxNGP: poverty disproportionality in other-race –.023 −.028
neighbors of group (g ≥ ngp) –8.6% −12.5%
GPxNGP: poverty disproportionality in other- –.011 −.012
race neighbors of group poor (gp ≥ ngp) –4.1% −5.3%

Note: Other components of the decomposition are held at their means.

address this question, I calculate changes in importantly to both black and Hispanic con-
poverty concentrations from changes in these centrated poverty. But most important for His-
conditions within the range observed in U.S. panics is poverty disproportionality of
cities using the decomposition model. other-race neighbors. Hispanics have many
Table 2 shows how a one standard devia- non-Hispanic neighbors who are dispropor-
tion decline in the indicated factor would tionately poor.
change poverty concentration based on the The disproportionate poverty of blacks’
decomposition model, with other components and Hispanics’ other-race neighbors could be
at their metropolitan mean values (from Table due to their being members of relatively poor
1). The spatial conditions are the dispropor- race groups (e.g., Hispanics having many
tionality measures and racial segregation.11 black neighbors) or because they are dispro-
The base poverty concentration row at the top portionately poor members of their groups
gives the level of concentrated poverty with (e.g., Hispanics having disproportionately
all components at means. poor non-Hispanic white neighbors). In fact,
Changes in all of the spatial conditions have both conditions contribute to the dispropor-
some impact on poverty concentration. But tionate poverty of blacks’ and Hispanics’
results in Table 2 indicate that three conditions other-race neighbors. Table 3 breaks down
are of primary importance: racial segregation, neighborhood poverty contact for the black
poverty status disproportionality within group and Hispanic poor by the race of the poor
(GPxGP, which can be viewed as a measure of neighbors they are in contact with. Hispanics’
poverty-status segregation within race), and other-race neighbors are disproportionately
poverty disproportionality in a group’s other- black. But Hispanics also have many non-
race neighbors (GxNGP). Their relative impor- Hispanic white neighbors whose poverty rate
tance varies by group. Racial segregation is is significantly above the overall non-His-
most important for black concentrated poverty, panic white poverty rate.
corresponding to the fact that blacks have by Massey’s theory of poverty concentration
far the highest level of segregation from other emphasizes racial segregation combined
groups. Poverty-status segregation contributes with racial poverty gaps and notes a role for
368 American Sociological Review 77(3)

Table 3. Metropolitan Average Contact (P*) with Neighborhood Poverty by Contacting and
Contactee Group

Contacting: Poor Members of Indicated Group

  Black Hispanic
Group in Contact with
Non-Hispanic White Poor .045 .052
  (.022) (.027)
Non-Hispanic Black Poor .167 .036
  (.074) (.028)
Hispanic Poor .030 .109
  (.036) (.074)
Asian Poor .005 .007
  (.009) (.009)
Other (not above) Poor .006 .006
  (.004) (.005)

Total Neighborhood Poverty Contact (gpP*p) .262 .218


  (.055) (.062)
N 166 144

Note: Standard deviations are in parentheses.

poverty-status segregation within race. The the decomposition model (Equation 5) while
decomposition model with data confirms holding the other components constant at met-
these two conditions are important in general, ropolitan means (by group). I employ five
but we should give nearly equal emphasis to metropolitan segregation levels, ranging from
a third condition in evaluating blacks’ and segregation two standard deviations below the
whites’ disproportionate neighborhood pov- mean to two standard deviations above the
erty: their other-race neighbors’ dispropor- mean. Figures 1 and 2 show the level of con-
tionate poverty. A third form of segregation, centrated poverty as group poverty rates
blacks’ and Hispanics’ segregation from mid- change from this model. The range of varia-
dle- and high-income members of other tion in the poverty rate (i.e., the range of x that
groups, thus plays an important role in pov- the lines show) is plus or minus two standard
erty concentration. deviations from the group poverty rate mean.
This holds all other components of the decom-
position at their means (shown in Table 1),
Implications of the Decomposition
with their relations specified in the analyti-
Model for Interaction of Segregation
cally derived relationship from Equation 5.
and Poverty Rates
Both figures show an interaction of segrega-
What does the decomposition model in tion and the poverty rate: lines tracing poverty
Equation 5 imply about the interaction of change have sharper slopes for high-segregation
segregation and group poverty rates? These than for low-segregation metropolitan areas.
terms multiply in the model, suggesting inter- For blacks in Figure 1, in a highly segregated
action. The magnitude and exact nature of the city (+2 SD), each 1 percent increase in the
interactive effect, however, depends on the black poverty rate is associated with almost a 1
values of other components in the model. percent increase in poor blacks’ contact with
To examine the interaction of segregation poor neighbors; in a low-segregation city (–2
and poverty concentration in the decomposi- SD), each 1 percent increase in the black pov-
tion model with values typical for U.S. cities, erty rate is associated with about a .3 percent
I predict levels of concentrated poverty from increase. For Hispanics, shown in Figure 2, in a
Quillian 369

Black Poor Contact with Poor (of any race)


0.5

0.4

0.3

0.2

0.1

0
0 0.1 0.2 0.3 0.4
Black Poverty Rate

segregation(V) at mean +1 sd +2 sd –1 sd –2 sd

Figure 1. Black Neighborhood Poverty Concentration and the Black Poverty Rate by
Metropolitan Segregation Level
Note: Predictions are from decomposition models with other components at black means.

0.5
Hispanic Poor Contact with Poor (of any race)

0.4

0.3

0.2

0.1

0
0 0.1 0.2 0.3 0.4

Hispanic Poverty Rate

segregation(V) at mean +1 sd +2 sd –1 sd –2 sd

Figure 2. Hispanic Neighborhood Poverty Concentration and the Hispanic Poverty Rate by
Metropolitan Segregation Level
Note: Predictions are from decomposition models with other components at Hispanic means.
370 American Sociological Review 77(3)

high-segregation city, a 1 percent increase in the a specification used by Jargowsky (1997) and
Hispanic poverty rate is associated with a .8 Massey and Fischer (2000), the models repre-
percent increase in the Hispanic concentrated sent segregation with dummy variables for
poverty rate; in a low-segregation city, a 1 per- categories of medium and high segregation
cent increase in the Hispanic poverty rate is (with low as the reference category).13 Other
associated with a .3 percent increase. The controls include the share of a metropolitan area
stronger interaction for blacks than Hispanics that is a member of the minority group and seg-
outside of the lowest segregation category pri- regation of poor from nonpoor. The left numeric
marily reflects the fact that segregation is sig- column shows results using the index of dis-
nificantly higher for blacks than for Hispanics. similarity to measure segregation. The right
As the figures show, a surge in a high- numeric column uses the variance ratio index.
poverty group’s poverty rate will increase Results using both measures are highly
group poverty concentration substantially consistent. Neither case shows support for an
more when the extent of race group with interaction between segregation and the group
other-race segregation is high, holding other poverty rate in predicting a group’s poverty
conditions constant. Broadly, this demon- contact. Only one interaction of segregation
strates that Massey’s theoretical argument is levels and group poverty rates is statistically
correct: segregation and poverty concentra- significant: the medium segregation category
tion interact for the reasons Massey’s simula- based on the variance ratio index in the His-
tion model made clear. panic model. This means that of eight interac-
tion coefficients across the two models, only
one is statistically significant and in the direc-
Lack Of Segregation– tion predicted by Massey’s theory.
Poverty Status In short, results of this analysis are similar
Interaction in Basic to those found by others with earlier years of
Regressions data and similar models. Correlation between
main effects and interactions may cause some
Results from the decomposition model dem- inflation of the model’s standard errors, but
onstrate that the interaction of segregation the use of dummy variable categories and
and group poverty rates does occur when a pooling across race groups to increase varia-
series of other spatial and demographic con- tion in segregation still produces no signifi-
ditions are held constant. Why, then, is there cant effects. As the group poverty rate
no interaction of segregation and group pov- increases, minority poor’s contact with poor
erty rates in the basic regressions, such as increases, but in simple regression it does so
those used by Jargowsky (1997) and Massey at a rate that is no faster in cities with rela-
and Fischer (2000)? The answer to this ques- tively low levels of segregation than in cities
tion must have to do with components that are with high or medium levels of segregation.
not held constant in the decomposition model.
The Missing Segregation and Poverty
Confirming Past Results Concentration Interaction
Before considering in more detail why past Basic regressions do not show an interaction
studies using regression have not found an inter- because other conditions specified in the
action between segregation and group poverty decomposition are not held constant. These
rates, I first confirm that the interaction fails to other spatial conditions are correlated with
hold using 2000 Census data and the exact mea- group poverty rates and segregation in a way
sures in the decomposition model. that counteracts the interactive intensification
Table 4 shows basic regressions of group that Massey expects.
poverty concentration on segregation, group In regression, the standard approach to
poverty rates,12 and their interaction. Following holding additional factors constant is to add
Quillian 371

Table 4. Coefficients of OLS Regressions of Metropolitan Group-Poor Contact with Poor


(gpP*g) on Segregation, the Group Poverty Rate, and Interaction

(1) Dissimilarity (2) Variance


Variables Index Ratio Index
Black (N = 166 metropolitan areas)
Race Segregation Medium (vs. Low) .002 .040*
  (.019) (.016)
Race Segregation High (vs. Low) −.010 .027
  (.020) (.017)
Black Poverty Rate .581*** .516***
  (.048) (.041)
Black Poverty Rate x Seg. Medium .046 −.081
  (.075) (.064)
Black Poverty Rate x Seg. High .112 .032
  (.074) (.064)
Seg. Poor/Not Poor .343*** .665***
  (.034) (.050)
Percentage Black .057** −.019
  (.018) (.016)
Constant −.023 .054***
  (.017) (.010)

Hispanic (N = 144 metropolitan areas)


Race Segregation Medium (vs. Low) −.034* −.028
  (.017) (.021)
Race Segregation High (vs. Low) −.014 −.013
  (.017) (.023)
Hispanic Poverty Rate .633*** .593***
  (.063) (.075)
Hispanic Poverty Rate x Seg. Medium .138 .209*
  (.080) (.095)
Hispanic Poverty Rate x Seg. High .046 .139
  (.078) (.097)
Seg. Poor/Not Poor .430*** .447***
  (.036) (.079)
Percentage Hispanic .153*** .087***
  (.012) (.015)
Constant −.096*** .034*
  (.018) (.016)

Note: Standard errors are in parentheses.


*p ≤ .05; ** p ≤ .01; *** p ≤ .001 (two-tailed tests).

these factors to the model as control varia- effect in producing concentrated poverty.
bles. The problem with this approach in this Moreover, the combination of additive and
case is that it requires that the relationship multiplicative terms in Equation 5 cannot be
between controls and the outcome be linear, easily linearized in the components. Taking
or be represented through linear transforma- logs, for instance, does not produce a more
tions. But as Equation 5 makes clear, the linear form.
relationship between the independent factors Instead, I use a two-step procedure to
and concentrated poverty is complexly non- determine which components are suppressing
linear. Simply controlling for these terms in a the interaction. First, I use the decomposition
linear model would not correctly specify their model (Equation 5) to create six sets of
372 American Sociological Review 77(3)

Table 5. Coefficients of Interactions from OLS Regressions of Decomposition-Predicted


Group Poverty Concentration on Group Poverty Rate and Segregation, Holding Indicated
Component at the Mean of Decomposition Prediction

Component Held at Mean in Decomposition

(1) (2) (5)


None % Not Nongroup (7)
(same as Group (3) (4) Pov. Rate (6) GPx
Variable Table 4) (png) GPxG GPxGP (Povng) GxNGP NGP
Black (N = 166)
Black Pov. −.081 −.084 −.041 .058 .003 −.037 −.113
Rate x Seg. (.064) (.067) (.061) (.056) (.096) (.095) (.066)
Medium
Black Pov. .032 −.011 .091 .294*** .210* .014 −.016
Rate x Seg. (.064) (.067) (.061) (.056) (.095) (.095) (.066)
High

Hispanic (N = 144)
Hispanic .209* .296** .209* .239** .046 .294* .126
Pov. Rate (.095) (.101) (.089) (.089) (.131) (.118) (.081)
x Seg.
Medium
Hispanic .139 .170 .153 .208* .153 .268* .095
Pov. Rate x (.097) (.103) (.092) (.091) (.134) (.120) (.082)
Seg. High

Note: Standard errors are in parentheses. Bold coefficients are appreciably larger than coefficients
in Model 1. The following variables are included in the regression but not shown: dummy variables
(main effects) for race segregation medium, race segregation high, main effect for group poverty rate,
segregation poor/nonpoor measure, and percentage group.
*p ≤ .05; ** p ≤ .01; *** p ≤ .001 (two-tailed tests).

metropolitan-by-race group predictions of the I estimated results separately for black and
level of concentrated poverty. These predic- Hispanic segregation.
tions are made holding the six components at The top panel of Table 5 shows results for
their means one at a time, with all other com- black segregation. Holding constant own-
ponents left at their original values. In the group poverty disproportionality (GPxGP) or
second step, I estimate six regressions with the non-black poverty rate results in a statisti-
the decomposition predictions of concen- cally significant interaction term in the direc-
trated poverty as the dependent variables and tion Massey suggests. The bottom panel of
the independent variables from Table 4. From Table 5 shows results for Hispanic segregation.
the interaction slopes in these six regressions, Two components produce statistically signifi-
we can investigate which of the components cant interaction terms: own-group poverty
of the decomposition suppress the interaction disproportionality (GPxGP) and dispro-
in a basic regression model. portionality in other-race (nongroup) neigh-
Table 5 shows coefficients of the interac- bors’ poverty status (GxNGP).
tions of segregation and poverty concentra- Because the decomposition model shows
tion from these regressions. These regressions many interactive effects among components,
include main effects of segregation and the the combination of several changes together
group poverty rate and controls for class seg- may be substantially different than the single-
regation and percentage group, but the table component changes shown in Table 5. To
does not show these coefficients (model spec- examine how multiple changes affect the segre-
ification is identical to column 2 of Table 4). gation by poverty-rate interaction, I computed
Quillian 373

Table 6. Coefficients of Regressions of Group Poor’s Predicted Contact with Poor from
Decomposition, Holding Multiple Components at Means

Outcome Is Predicted Group Poverty Concentration with Indicated


Components Held at Mean in Decomposition

  Black Hispanic

(1) GPxGP (2) GPxGP (3) Povng (4) GPxGP and


and and Povng and Povng and
Variable Povng and GxNGP GxNGP GxNGP
Race Seg. Med. (vs. Low) .008 −.037** −.025 −.035*
  (.022) (.013) (.017) (.017)
Race Seg. High (vs. Low) −.051* −.091*** −.057** −.077***
  (.024) (.014) (.019) (.018)
Group Poverty Rate .345*** .286*** .211** .305***
  (.056) (.032) (.061) (.060)

Group Pov. x Seg. Med. .141 .232*** .123 .154*


  (.088) (.050) (.078) (.077)
Group Pov. x Seg. High .472*** .528*** .286*** .355***
  (.088) (.050) (.080) (.079)

Seg. Poor/Not Poor .338*** .227*** .354*** .321***


  (.069) (.040) (.065) (.064)
% Group .027 .123*** .125*** .208***
  (.021) (.012) (.012) (.012)
N (metros) 166 166 144 144

Note: Table shows predicted poverty concentration with the two and three components at mean that
had the largest effects on interactions. Standard errors are in parentheses. Constant term is included but
not shown.
*p ≤ .05; ** p ≤ .01; *** p ≤ .001 (two-tailed tests).

predictions from the decomposition model segregation in Models 1 through 4. The fac-
involving changing two and three components tors that suppress the interaction are moder-
to the mean simultaneously, for all possible ately consistent across groups.
combinations of two and three components.14 I The most consistently important factor is
then estimated regressions in which the pre- the level of disproportionality in poverty-status
dicted poverty concentration scores were contact among own-group members (GPxGP).
regressed on the basic regression model. For blacks, there is a strong negative relation-
For each group, Table 6 shows the models ship between this component and the group
with two and three components simultane- poverty rate: the correlation of GPxGP and
ously at means that had the largest impact on metropolitan poverty rates is –.7. The same
the interactions between segregation and the pattern holds for Hispanics, but more weakly:
group poverty rate.15 Coefficients of the main the correlation of GPxGP and the group pov-
effect terms and control variables are also erty rate is –.5.16 This implies that when there
displayed. Components that were the strong- is a low percentage of a group that is poor in a
est individually produce the largest changes metropolitan area, group poor are more likely
in combination. When two or three key com- to be residentially isolated from more middle-
ponents are set to means, the interaction class members of their own group. Massey’s
emerges strongly, as the Massey model pre- model predicts that as a group’s poverty rate
dicts. This is shown for black and Hispanic increases, the concentration of poverty will
374 American Sociological Review 77(3)

increase more sharply in more segregated neighbors but more poor other-group neigh-
environments. Empirically however, higher bors, with little change in the level of neigh-
poverty rates for blacks and Hispanics are borhood poverty contact.
associated with less spatial separation of group A third factor that suppresses the interac-
poor from the group nonpoor, which reduces tion is poverty disproportionality in other-race
the concentration of group poverty and par- contact (GxNGP). This is a measure of the
tially offsets Massey’s expected interaction. extent to which group members’ other-race
That poor and nonpoor group members are neighbors are poorer than the other-race aver-
less segregated from each other when group age. Suppression of the interaction from this
poverty rates are high is an unexpected but factor occurs for much the same reason as for
consistent fact in the data. When group pov- the other-race poverty rate. In metropolitan
erty rates are low, it appears that nonpoor areas with high group poverty rates, group
blacks can better separate themselves from members’ other-race neighbors are more often
poor blacks; the same pattern holds but is less poor than in metropolitan areas with low
pronounced for Hispanics. The Washington, group poverty rates. This weakens segregation
DC and Atlanta metropolitan areas, for effects on concentrated poverty, because
instance, have relatively low black poverty changes in segregation result in less contact
rates overall and high spatial differentiation, with poor group members but more contact
marked by distinct middle-class and poor with nonpoor group members. This process is
black neighborhoods. By contrast, in cities especially important for Hispanics, who on
with high-poverty black populations, like average have many non-Hispanic neighbors.
many smaller metropolitan areas in the South, The processes that suppress Massey’s
poor and nonpoor blacks are more spatially expected interaction vary by group. For
mixed. The reasons for this pattern are beyond blacks, it is predominately that poor and non-
the scope of this analysis and are a good topic poor blacks are more spatially mixed in cities
for future research (for a related analysis, see with high black poverty rates. For Hispanics,
Bayer, Fang, and MacMillan 2011). it is predominately that as segregation declines,
As black poverty rates increase, it is non- Hispanics often swap poor Hispanic neighbors
poor blacks who, on average, have especially for poor non-Hispanic neighbors, thus weak-
large increases in their poverty contact, ening the intensification from the combination
because their degree of spatial separation of segregation and high poverty rates Massey
from poor blacks tends to decrease. The com- expected. The result is that Massey’s expected
bination of high segregation and high black intensification of spatially concentrated pov-
poverty rates produces an interactive intensi- erty from the combination of high segregation
fication in poverty contact for nonpoor blacks and high poverty rates fails to appear because
rather than for poor blacks.17 it is offset by these other conditions. The
A second factor that suppresses the inter- intensification is evident if these other condi-
action of segregation and poverty rates for tions are held constant by the decomposition
blacks and Hispanics is the other-race poverty model. Massey’s basic logic of how segrega-
rate (Povng), that is, the poverty rate among tion and high minority poverty rates should
persons not in the focal race group. The other- interact is correct, but other conditions associ-
race poverty rate is correlated with the group ated with high segregation or group poverty in
poverty rate because both group and other- metropolitan areas offset some of the increase
race poverty rates tend to fluctuate together in poverty concentration.
with business cycles and local labor market
conditions. This correlation makes segrega-
tion less important, because a reduction in the Discussion
level of segregation results in poor group The failure of past studies to establish an
members having fewer poor own-group interaction of segregation and poverty con-
Quillian 375

centration has been puzzling. The theoretical Blacks’ and Hispanics’ other-race neighbors
account developed by Massey and Denton are about 50 percent more likely to be poor
(1993) and elaborated through simple simula- than the other-race average, with little addi-
tions by Massey (1990) is compelling. Yet tional effect of the poverty status of the black
this account was called into question by the or Hispanic person. In effect, blacks and His-
failure of other studies to find the proposed panics are segregated from higher-income
interaction of group poverty rates and segre- members of other racial groups. It is thus more
gation in data (Jargowsky 1997; Massey and accurate to describe concentrated poverty in
Fischer 2000). It seemed the very idea that minority communities as resulting from three
segregation and high minority group poverty segregations: racial segregation, poverty-sta-
rates play an important role in concentrating tus segregation within race, and segregation
poverty was wrong, or the process was not from high- and middle-income members of
empirically important, or there was some fun- other racial groups. Disproportionate contact
damental but unexplained problem in empiri- with poor members of other groups is espe-
cal tests employed in past work. If the results cially important for Hispanics, owing to their
indicated a conceptual problem in Massey’s relatively low racial segregation. For Hispan-
model, this would undermine a major ratio- ics, other-race neighbors’ disproportionate
nale offered by Massey and Denton and other poverty has more impact on high Hispanic
scholars as to why racial segregation is a levels of neighborhood poverty concentration
significant social problem, as well as under- than does segregation. Massey’s model is
cut a key argument of American Apartheid. incomplete in omitting this process.
This analysis demonstrates that this inter- Massey’s model was too simple because he
action was not found in past work because assumed that only the group poverty rate
Massey’s substantive model of how segrega- interacted with, or intensified the effect of,
tion concentrated poverty, while correct in its segregation. He took other important condi-
broad logic of how segregation and group tions, such as within-group poverty-status seg-
poverty disparities should combine interac- regation, as having separable, linear effects on
tively, was incomplete and, at points, too poverty concentration (other scholars testing
simple. The decomposition model developed his framework implicitly adopted this view as
here expands Massey’s model to include well). The decomposition model shows that
additional conditions and allow for a more several other conditions interact with segrega-
accurate description of the complicated way tion in producing concentrated poverty. The
demographic and spatial conditions of race effects of racial segregation on poverty con-
and poverty status combine. centration are thus the product of a complex
Massey’s theory hypothesizes that concen- set of other spatial and demographic condi-
trated poverty in minority communities tions that may strengthen or weaken them,
results from two segregations: segregation of including within-group poverty-status segre-
non-white poor from members of other lower- gation, blacks’ and Hispanics’ tendency to be
poverty racial groups (racial segregation with in contact with especially poor other-race
racial inequality) and from nonpoor of their members, and relative group size.
own racial group (poverty-status segregation Massey expected metropolitan areas with
within race). This is a compelling picture, and high group poverty rates and high group seg-
it represents an important pair of conditions regation to have multiplicatively higher rates
that contribute to the formation of concen- of concentrated poverty for the segregated
trated poverty in non-white neighborhoods. minority group. Without controls, they do not
Yet the results indicate that we must add a have multiplicatively higher rates because
third spatial pattern to understand poverty other conditions change with segregation and
concentration for blacks and Hispanics: pov- group poverty rates and somewhat offset or
erty disproportionality in cross-race contact. suppress intensified poverty concentration
376 American Sociological Review 77(3)

from the combination of segregation and high model indicates that if blacks and Hispanics
group poverty rates. When these other condi- had lower segregation levels, holding other
tions are held constant statistically, we can conditions constant, the concentration of pov-
locate Massey’s expected interaction in data. erty for these groups would decline notably.
In the case of black segregation, the inter- Yet the results also provide some support for
action of segregation and the metropolitan the idea that income effects in cross-race con-
black poverty rate is suppressed primarily tact matter, although not primarily the black
because segregation based on poverty status income effect on cross-race contact that Wil-
(income segregation) among blacks is lower son suggested. Instead, blacks’ and Hispanics’
in cities with high black poverty rates. For other-race neighbors’ relatively high poverty
this reason, rather than the black poor, it is rates are an important factor contributing to
working- and middle-class blacks who absorb poverty concentration.
the increase in poverty contact and experi- The high poverty rates of other-race neigh-
ence the main increase in neighborhood pov- bors help to explain the puzzle of Hispanics’
erty contact in segregated cities with high high neighborhood poverty concentration.
black poverty rates. This is consistent with Hispanics experience neighborhood poverty
literature emphasizing how middle-class concentration that is only a bit below the lev-
blacks’ high contact with poor blacks contrib- els of African Americans. This is impossible
utes to their fragile economic position (Pat- to explain via the Massey model, with its
tillo-McCoy 1999). focus on racial segregation, because Hispan-
In the case of Hispanic segregation, Mas- ics have a poverty rate similar to blacks but a
sey’s analysis was undone by failing to account significantly lower level of segregation. Yet
for the important role of poor neighbors from because Hispanics’ other-race neighbors are
other racial and ethnic groups. In less segre- often impoverished, their lower segregation
gated environments, poor Hispanics tend to only weakly translates into lower neighbor-
have fewer poor Hispanic neighbors but more hood poverty contact.
poor non-Hispanic neighbors. Because of this, Decreasing racial segregation through
reduced segregation for Hispanics has a weaker efforts like aggressive enforcement of anti-
effect in reducing poverty contact than one discrimination policies in housing would sig-
would expect from the Massey model. nificantly reduce poverty concentration, but
In their debates about the relative role of we need to attend to the possibilities of
race and class factors in concentrating pov- income-selective effects in desegregation.
erty, Massey’s and Wilson’s perspectives Income selectivity can undercut the potential
hypothesize opposite relations between racial of desegregation to reduce poverty concentra-
segregation and poverty concentration. Mas- tion. Policies that aim to provide broader
sey’s theory posited that segregation increased housing choices may not deconcentrate pov-
poverty concentration and desegregation erty if blacks and Hispanics can only find
would decrease it. Wilson’s theory hypothe- places in the most disadvantaged desegre-
sized that racial desegregation increased pov- gated neighborhoods.
erty concentration because desegregation was
accomplished primarily by more affluent
members of disadvantaged groups moving Appendix
into white neighborhoods. Measures Used in the Formal Model
The results here provide more support for
Massey’s view of the effects of segregation A group’s poverty concentration is assessed
on poverty concentration: overall, racial seg- as the share poor in the tract of a poor mem-
regation in U.S. cities is a key lynchpin of ber of the group in question. This can be cal-
highly concentrated poverty. The decomposition culated for the metropolitan level from
Quillian 377

tract-level data with the following formula Acknowledgments


(see Lieberson and Carter 1982): An earlier version of this manuscript was presented at the
2009 meetings of the American Sociological Association
in San Francisco and the 2008 meetings of the Interna-
 gpi   pi  tional Sociological Association Research Committee 28 in
gp P * p =Si  
GP   ti  Palo Alto, California. I received helpful comments on ear-
lier versions from the University of Chicago Demography
Workshop; the California Center for Population Research;
Where gpi denotes the number of poor per- the Ohio State University Population Research Institute;
sons in race group g in the ith tract, pi is the the University of California at Davis Program in Econ-
omy, Society, and Justice; the University of Michigan
number of poor persons of any race in the ith Department of Sociology; and the ASR reviewers.
census tract, GP is the total number of poor in
the group in the metropolitan area for which
the index is calculated, and ti is the total Notes
population of the ith neighborhood tract. This   1. Author’s calculations from 2000 Census and Orfield
measure can be interpreted as the average and Lee (2005). Poor neighborhoods are defined as
having a poverty rate above 20 percent. High-poverty
percentage of the population poor in the schools are defined as 50 percent or more of students
neighborhood of the average poor member of are eligible for a free or reduced-price lunch (see
racial group g. While the literature refers to Logan [2011] for an excellent discussion).
this as a measure of “contact,” this is short-   2. For simplicity, I refer to whites, blacks, and Hispanics
hand for coresidence in the same census tract; as “race groups,” even though Hispanics are often
described as an ethnic rather than a racial category.
there is no direct measure of contact in per-   3. Rather than entering a continuous segregation measure,
sonal interactions. to reduce multicollinearity, Jargowsky divides segrega-
Measures of segregation, by contrast, tion into three categories—high, medium, and low—and
measure the relative evenness of two groups’ interacts dummy variables for these categories with the
distributions over census tracts (Massey and measures of metropolitan poverty and income levels.
 4. Massey and Fischer assign segregation between
Denton 1988). The variance ratio index of whites and whites to have zero segregation.
segregation between group g and persons not   5. In Massey and Fischer’s (2000:673) revised concep-
in group g (ng) can be calculated from tract tion, segregation interacts with any “structural shifts
data for a metropolitan area as follows (see that influence the level and distribution of income.”
James and Taeuber 1985):   6. Massey and Fischer estimate cross-sectional models for
three points in time (1970, 1980, and 1990) and two sets
of change regressions (1970–1980 and 1980–1990),
2
g  yielding a total of 15 sets of regression coefficients.
ti  i − π    7. Massey and Fischer do not present formal tests of the
 ti 
V( g )( ng ) =∑ difference in slope coefficients across models esti-
i T π(1 − π) mated for different levels of segregation.
  8. The variance ratio index has a long history of use; see
James and Taeuber (1985, note 3) and Reardon and
Where gi denotes the population of the racial Firebaugh (2002).
group in the ith tract, ti is the total number of   9. I drew census data from the Census CD census tract data
persons in the ith tract, T is the total popula- extract produced by GeoLytics (2003). Because the
tion of the metropolitan area for which the Census long form is no longer used, comparable data on
poverty-by-race for tracts is not available for 2010. Sam-
measure is calculated, and π is the group pro- pling error in tract-level group poverty estimates in
portion of the population in the metropolitan American Community Survey data make it a poor sub-
area. stitute for the 2000 Census at the date of this writing.
10. An alternative possibility is to calculate segregation
between whites and each minority group rather than
Funding minority versus nonminority. Group versus nongroup
The author acknowledges financial support for this segregation corresponds more closely to Massey’s
research from National Institute of Health award # conceptual model than does group versus white,
3001663503/R21 CA154269. because the group poverty rate should interact with
378 American Sociological Review 77(3)

segregation from all other groups, not just segregation GeoLytics. 2003. CensusDVD Research Package 2000
from whites. Long Form [Computer File]. East Brunswick, NJ:
11. Results setting disproportionality measures to 1 and GeoLytics, Inc.
segregation to Asian levels (the racial group with the James, David R. and Karl E. Taeuber. 1985. “Measures of
lowest segregation level), rather than one standard Segregation.” Pp. 1–32 in Sociological Methodology
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1990.” American Journal of Sociology 105:1–37. Lincoln Quillian is Professor of Sociology and Faculty
Reardon, Sean and Glenn Firebaugh. 2002. “Measures of Fellow at the Institute for Policy Research at Northwest-
Multigroup Segregation.” Sociological Methodology ern University. He is a social demographer with interests
32:33–67. in social stratification, race and ethnicity, urban sociol-
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“Does Segregation Still Matter? The Impact of focuses on the causes and consequences of racial and eco-
Student Composition on Academic Achievement nomic segregation in metropolitan areas.

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