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Neighbourhood Social Mix: Right Diagnosis; Wrong Prescription?
George Galster
Hilberry Professor of Urban Affairs Wayne State UniversityDetroit USA
Presentation at ENHR PlenaryToulouse, FranceJuly 6, 2011
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Purposes of Presentation
Analyze:
1. “diagnosis” of social problem thought to justify social mix
2. “prescription” of social mix
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Preview of Main Conclusions
There IS strong evidence base (at least in U.S.) to worry on equity and efficiency grounds about spatial concentrations of disadvantaged households
However, “social mix” is complex & caveat-laden prescription to end concentrated disadvantage
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Policy Rationale: Equity & Efficiency Goals
EQUITY: Improves absolutely well-being of disadvantaged
EFFICIENCY: Positive-Sum Outcomes for Society (aggregation of disadvantaged + advantaged)
Implies :Pareto Improvements sufficient condition;
Hicks-Kaldor compensation principle necessary condition :
[“$$ winners” > “$$ losers”]
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Crucial Feature of Concentrated Disadvantage:Are there Non-Linear Effects?
If rate of social problems grows disproportionately with concentration of disadvantage
a policy that reduces such concentrations can, IN THEORY yield both equity & efficiency gains
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What Do U.S. Studies Of Neighbourhood Effects of Concentrated Poverty Tell Us re: Non-Linear?Rate of Social Problems in Neighbourhood
Poverty Rate in Neighbourhood
20% 40%
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Evidence from Econometric Studies of Residential Property Values and % Disadvantaged in Neigh.
5 10 20 40
% Poor inNeighborhood
$ Valuesor Rents
0
(not drawn to scale)
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OK, So Concentrated Disadvantage is Bad…But what about “Prescription” of Social Mix?” Three crucial caveats
Desired social mix goal unspecified in precise detail
Many program options; each with
different benefits & costs
Potential Inequities for Disadvantaged who may move from current neighborhoods as part of “mixing” process
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Social Mix Policy Caveat #1
Desired social mix goal unspecified in precise detail
•Composition
•Concentration
•Scale
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Social Mix Policy Caveat #1
•Composition: On what basis(es) are we mixing people: ethnicity, race, religion, immigrant status, income, housing tenure…all, or some of the above?
•Concentration: What is the amount of mixing in question? Which amounts of which groups comprise the ideal mix, or are minimally required to produce the desired outcomes?
•Scale: Over what level(s) of geography should the relevant mix be measured? Does mixing at different spatial scales involve different causal processes and yield different outcomes?
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Social Mix Policy Caveat #2
Many program options to achieve mix:
Expand # affordable dwellings in advantaged areas via subsidized units or tenant-based subsidies for market-rate
Expand # up-market rate dwellings in disadvantaged areas
Develop new residential areas as socially mixed neighbourhoods
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Social Mix Policy Caveat #3
Potential inequities for Disadvantaged who may move from current neighborhoods as part of “mixing” process:
Loss of “bonding social capital”
Loss of valuable social institutions
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Review of Main Conclusions
There IS strong evidence base (at least in U.S.) to worry on equity and efficiency grounds about spatial concentrations of disadvantaged households ; “diagnosis” is valid
However, “social mix” is complex & caveat-laden prescription to end concentrated disadvantage ; perhaps wrong “prescription”
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And Remember: Social Mix is Not Enough!
It will take a more comprehensive set of social welfare / human development interventions and supports to provide fair opportunities for all citizens,
…even in a world of perfectly socially
mixed neighborhoods.
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Thank you for your comments and questions!
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MTO Does Not Reject Neighbourhood Effects!
Little initial exposure to low poverty neighbourhoods far from original ones
Little sustained exposure to low poverty neighbourhoods
Little variation of neighbourhood: % minority, job access, school district
Prior exposure to disadvantaged neighbourhood creates indelible effects
Selection bias of moves after initial random assignment
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References
• Galster, G. “Neighborhood Social Mix: Theory, Evidence, and Implications for Policy and Planning,” in Planning as if People Mattered: Looking Back to the Future, edited by Naomi Carmon and Susan Fainstein. Philadelphia: University of Pennsylvania Press, 2011
• Galster, G. et al. “Does Neighborhood Income Mix Affect Earnings of Adults? New Evidence from Sweden,” Journal of Urban Economics 63 (2008): 858-870.
Galster, G. et al.“The Costs of Concentrated Poverty: Neighborhood Property Markets and the Dynamics of Decline,” pp. 93-113 in N. Retsinas and E. Belsky, eds. Revisiting Rental Housing: Policies, Programs, and Priorities. Washington, DC: Brookings Inst Press, 2008
• Galster, G.“Neighbourhood Social Mix as a Goal of Housing Policy: A Theoretical Analysis.” European Journal of Housing Policy 7(2007), 19-43.
• Galster, G. “Should Policymakers Strive for Neighborhood Social Mix? An Analysis of the Western European Evidence Base,” Housing Studies 22 (no. 4, 2007): 523-546.
• Friedrichs, Blasius, Galster, “Frontiers of Quantifying Neighbourhood Effects: Introduction,” Housing Studies 22 (no. 5, 2007): 627-636
• Galster, G. et al. “The Influence of Neighborhood Poverty During Childhood on Fertility, Education and Earnings Outcomes,” Housing Studies 22 (2007): 723-752
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Intra- and Extra-Neighbourhood Processes Potentially Related to Social Mix
Intra-Neighbourhood Processes :• Social norms & values• Social control, reduced violence
exposure• Peer effects, role models• Social networks• Relative deprivation, competitionExtra-Neighbourhood Processes:• Job accessibility• Institutional & public service resources• Stigmatisation