Mele, A. (2020). Does School Desegregation Promote Diverse Interactions? An Equilibrium Model of Segregation within Schools. American Economic Journal-Economic Policy.
vol. 12 (2) pp. 228-257
This paper studies racial segregation in schools using data on student friendships from Add Health. I estimate an equilibrium model of friendship formation, with preferences allowing both homophily and heterophily in direct and indirect ties. I find that homophily goes beyond direct links: students also prefer racially homogeneous indirect friends, while there is heterophily in income. I simulate policies reallocating students across schools. Race-based policies have nonlinear effects on within-school segregation and other network features such as clustering and centrality. Policies increasing diversity through reallocations based on income have less impact on racial segregation.
American Economic Journal-Economic Policy