Understanding the changing fortunes of metropolitan neighborhoods, 1980 to 1990

Abstract

This article develops a model that relates decadal changes in neighborhood poverty rates to metropolitan‐wide economic changes and the neighborhood's demographic profile, predetermined poverty rate, and locational characteristics. The model is estimated for the 1980–1990 period using metropolitan census tracts as proxies for neighborhoods. This national sample of tracts is stratified into predominantly white, African‐American, Hispanic, and mixed subsamples.

Results indicate that only a few variables consistently predict growth in neighborhood poverty: overall job availability; the age composition of neighborhood residents; the proportion of nonmarried households; and the neighborhood's 1979 poverty rate. Other variables have distinctly different coefficients depending on the racial‐ethnic subsample. These coefficients include segregation, welfare benefits, the location of manufacturing employment, and availability of automobiles. We conclude that studies that focus solely on African‐American poverty neighborhoods fail to recognize common patterns across all neighborhoods and to discern unique features of neighborhoods inhabited predominantly by non‐African Americans.