, racial income disparities, and segregation. The use of race as a signal arises here, as in models of statistical … in turn perpetuates the informational asymmetries. Minority groups necessarily suffer disproportionately from segregation … model, endogenous segregation will be mutual, since minority agents face an adverse selection of majority agents who are …

. Second, diversity also influences individuals' location decisions. Segregation (variation of diversity across regions) always … encouraging segregation …