Consumption Segregation / Corina Boar, Elisa Giannone.

Format:

Book

Author/Creator:

Boar, Corina.

Contributor:

National Bureau of Economic Research.

Giannone, Elisa.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31133.

NBER working paper series no. w31133

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

This paper introduces consumption segregation, a new margin of residential segregation, and examines its patterns, causes, and discusses its aggregate consequences. We use new longitudinal and highly granular data to measure consumption segregation in the United States and document that it is high but relatively stable over the past 15 years, with substantial regional variation. We find that income segregation plays a more prominent role than other forms of segregation in driving consumption segregation, mainly due to the inability to smooth shocks to income. We illustrate a new mechanism through which, in the presence of social comparisons, consumption segregation can exacerbate wealth inequality.

Notes:

Print version record

April 2023.