On average, white people can afford to live in more affluent areas than black families and thus have access to a better school district with better resources. Nevertheless, black families who make the same income as white families may still live in more impoverished neighborhoods due to a racialized housing process. 


State University of New York at Stony Brook

 Income segregation creates very wealthy school districts and impoverished school districts, which can greatly impact future outcomes for students by impacting their levels of achievement. Owens argues in the reference paper that income segregation is a reason behind the achievement gap between low and high-income students.

The Impact of Income Segregation on the Achievement Gap

Owens, Ann. "Income segregation between school districts and inequality in students’ achievement." Sociology of Education 91.1 (2018): 1-27.

Income segregation between school districts and inequality in students’ achievement

The gap between high and low-income students' test scores has increased 40 percent from the 1970s until the early 2000s. The gap for high and low-income young adult students' college enrollment and educational attainment has also grown. However, the education disparities between white and black students have remained the same(but still significant). Achievement gaps are more prominent in metropolitan areas because it is a highly segregated place. The achievement gap between black and white students is larger in areas that are highly segregated. 

Achievement Gap Between High and Low Income Students

A. Income segregation between school districts affects the resources that are crucial to students' success. These resources include school funding, teacher quality, and students' peer characteristics. 

B. Income segregation creates an environment that pools all of the low-income students together, leading to a higher cost in providing a safe learning environment and providing good quality teachers.

C. Income segregation decreases the likelihood of high school graduation for low-income students but does not affect high-income students.



Effects of Income Segregation

Race and Income Segregation

PSID(Panel Study on Income Dynamics) provides information on

A.Family income 

B.Children's race

C.Children's Test scores

D.Area of metropolitan residence

In 1997, the PSID Child Development Supplement(CDS) collected data on children ranging from 0 to 12 years old and performed two follow-up studies, the CDS I and CDS II. It had a sample size of 2500 children in the CDS II. However, the sample used in this study included about 1200 children because it was restricted to the children assessed in the CDS I living in metropolitan areas. The information was collected over a period, which allows for a better understanding of the children's family situation. It is also important to note that there is an oversample of black families in the PSID.


Data and Methods used by Owens

The sample is limited to black and white students. These models are different than the ones for income segregation.

Model 1 demonstrates that white students had significantly higher math and reading achievement than black students.

Model 2 explores the relationship between income segregation and income. It was found that there is a positive and significant relationship between race and income segregation for math and reading achievement. The achievement gap between white and black students is greater in highly segregated places.

Model 3 controls for the MSA that the child lives in. It was found in places that integrated the MSA's there is no achievement gap between black and white students. However, as income segregation increases in a particular area, white students perform significantly better in math and reading than black students.

Results(Race) of Income segregation between school districts and inequality in students’ achievement

Model 1 predicts math and reading scores based on family income and considers the control variables. It was found that family income has a significant but small effect on scores; for every 10,000 dollar increase in family income, there was a .2 score increase with a standard deviation of 1 percent.

Model 2 compares income segregation among families who enroll their children in public school. This Model doesn't predict reading or math achievement.

Model 3 compares the association between family income and math achievement. Owens found no association between family income and math scores in integrated MSA's but did find a significant association between math scores and family income in highly segregated areas.

Model 4 controls in MSA 
A. Race
B. Racial segregation between districts
C. Median household income 
D.Private school enrollment
It was found that the association between family income and test scores becomes greater in highly income segregated areas.


Results(Income Segregation) of Income segregation between school districts and inequality in students’ achievement

A. Selection Bias-Students attend schools that are within a district. Higher-income children can achieve more than low-income children because their families can afford to live in a more affluent neighborhood and access better schools.

B. Reverse Causality-There can be a preexisting difference between the quality of school districts, which can cause people more likely to choose a neighborhood with a good school distinct. This can cause a cyclical relationship because income segregation leads to gaps in achievement, which leads to gaps in income; the poor stay poor, and the rich stay rich.

C.Cofounders-Income inequality increases income segregation, which can be due to racial disparities.


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