INCOME INEQUALITY, RACE, AND PLACE: DOES THE DISTRIBUTION OF RACE AND CLASS WITHIN NEIGHBORHOODS AFFECT CRIME RATES?*

Abstract

This study tests the effects of neighborhood inequality and heterogeneity on crime rates. The results of this study, which were obtained by using a large sample of census tracts in 19 cities in 2000, provide strong evidence of the importance of racial/ethnic heterogeneity for the amount of all types of crime generally committed by strangers, even controlling for the effects of income inequality. Consistent with predictions of several theories, greater overall inequality in the tract was associated with higher crime rates, particularly for violent types of crime. Strong evidence revealed that within racial/ethnic group inequality increases crime rates: Only the relative deprivation model predicted this association. An illuminating finding is that the effect of tract poverty on robbery and murder becomes nonsignificant when the level of income inequality is taken into account; this finding suggests that past studies that failed to take income inequality into account may have inappropriately attributed causal importance to poverty. This large sample also provides evidence that it is the presence of homeowners, rather than residential stability (as measured by the average length of residence), that significantly reduces the level of crime in neighborhoods.