From Past to Present: An Examination of the Effects of Historic Redlining on Net Worth Within Seattle

Abstract

The American government and its policies have a long history of racism. In particular, the historic policy of redlining is one legislation explicitly responsible for America's modern-day urban disparities. This study attempts to estimate the effect of redlining on urban disparities of wealth in Seattle. Using an ordinary least squares regression analysis of 2012 census tract-level net worth and socioeconomic data, I identify the long-run effects of redlining on net worth in Seattle. I found that net worth exponentially decreases when shifting from areas historically graded A to areas historically graded D. Additionally, my findings further confirm that homeownership significantly impacts wealth.