“…5 A subtle but important question is how one should interpret our estimated preferences for neighborhood racial composition, and in particular whether they should be viewed narrowly as preferences for the skin color of neighbors or broadly as preferences for both skin color and the endogenous amenities that result from the way that local retailers, employers, governments, police, and other relevant actors behave toward neighborhoods with different demographic makeups. Because our IV strategy captures variation in tract racial shares driven by variation that moves slowly over time as inputs (metro-level race shares inter-2 In related papers, Derenoncourt (2022) studies the impact of southern Black migration to specific northern and western commuting zones on inter-generational income mobility of households in those zones and Shi, Hartley, Mazumder, and Rajan (2022) study the impact of this migration on urban renewal projects at the city level. For identification, Boustan (2010), Derenoncourt (2022) and Shi, Hartley, Mazumder, and Rajan (2022) use southern state-level push factors interacted with historical county-level migration patterns.…”