East-Side Story: Historical Pollution and Persistent Neighborhood Sorting

Why are the east sides of formerly industrial cities more deprived? To answer this question, we use individual-level census data and create historical pollution patterns derived from the locations of 5,000 industrial chimneys and an atmospheric model. We show that this observation results from path-dependent neighborhood sorting that began during the Industrial Revolution, as prevailing winds blew pollution eastward. Past pollution explains up to 20% of observed neighborhood segregation in 2011, even though coal pollution stopped in the 1970s. We develop a quantitative model to identify the role of neighborhood effects and relocation rigidities underlying this persistence.

Automated summary

The greater deprivation in the east sides of formerly industrial cities is attributed to historical pollution patterns caused by prevailing winds blowing pollution eastward during the Industrial Revolution. Past pollution explains up to 20% of observed neighborhood segregation in 2011, even though coal pollution ceased in the 1970s. A quantitative model was developed to identify the role of neighborhood effects and relocation rigidities underlying this persistence.