Ethnic Segregation, Tipping Behavior, and Native Residential Mobility

Abstract

We study tipping behavior in residential mobility of the native population in Sweden between 1990 and 2007. Using regression discontinuity methods, we find that the native population growth in a neighborhood discontinuously drops once the share of non-European immigrants exceeds the identified tipping point. Native tipping behavior can be ascribed to both native flight and native avoidance. Natives with a high level of educational attainment and the highest labor earnings are more likely to move from neighborhoods that have tipped. We conclude that tipping behavior is likely to be associated with ethnic as well as to socio-economic segregation in Sweden.