Natives contribute to the residential segregation of immigrants

Our place of residence is an important determinant of our welfare. Milanovic (2015) showed that our country of residence could explain up to two thirds of the differences in incomes across individuals in the world. Income differences across countries are much larger than income differences within countries, but the region or neighborhood of residence are still able to explain between one third (Kumar et al., 2022) and one sixth (Bradbury and Triest, 2016) of income differences between individuals in both developing and developed countries. In addition to this level effect, the neighborhood of residence has been shown to be a key factor for upward income mobility, defined as the probability that children obtain higher incomes when they become adults (Chetty and Hendren, 2018a; 2018b).