Income Segregation in Brazilian Cities: The role of vertical neighbourhoods

This chapter investigates the role of vertical neighbourhoods in explaining income segregation at the bottom and top of the income distribution for 100 urban agglomerations in Brazil in 2000 and 2010. Income segregation is measured using rank-order income segregation measures for different neighbourhood definitions and income percentiles. An econometric model of income segregation is fitted for income segregation measures at the bottom and top of the income distribution against a new measure that aims to capture the isolation of apartment dwellers to other type of dwellers. The results show that this measure is significant in explaining the segregation of those at the top of the income distribution but not of those at the bottom.