This paper studies the distribution of income within neighborhoods and contrasts it with the national income distribution. It relies on a unique feature of the American Housing Survey, whose 1985, 1989 and 1993 waves of interviews provide data for small residential neighborhoods. These consist of a dwelling unit and up to ten of its nearest neighbors. Most previous work on neighborhoods has used ... read moreinformation for much larger groupings of the population, such as census tracts. The paper employs a variety of parametric and nonparametric econometric tools to study income sorting across US residential neighborhoods. It documents the patterns of dependence among neighbors' income and imperfect sorting, with moderate but very significant correlation among incomes of neighbors and of considerable income mixing in U.S. neighborhoods.read less
