Test score gaps by MSA. Map credit: Brookings Institution.
by James A. Bacon
Following the lead of the book, “Why Nations Fail,” Brookings Institution scholar Jonathan Rothwell classifies national institutions into two categories: “open” institutions that diffuse power and opportunity and “extractive” institutions that concentrate power and limit opportunity. Among the extractive institutions he espies in the United States is zoning. As he writes for the New Republic:
Anti-density zoning — embodied in lot-size and density regulations — is an extractive institution par excellence. Through the political power of affluent homeowners and their zoning boards, it restricts private property rights — the civic privilege to freely buy, sell, or develop property — for narrow non-public gains. Property owners in a jurisdiction benefit from zoning through higher home prices (because supply is artificially low) and lower tax rates (because population density is kept down, as school age children are kept out), while everyone else loses.
In a new report for the Brookings Institution, Rothwell endeavors to measure the impact of restrictive zoning policies upon the ability of lower-income Americans, in particular African-Americans and Hispanics, to access higher quality schools. In a ranking of the 100 largest metro areas, he finds that zoning restrictions lead to higher housing costs, more economic segregation and greater gaps in test scores between poor and affluent neighborhoods.
The proxy measure Rothwell uses to rank zoning restrictiveness seems to be a bit of a stretch: the prevalence of land-use law firms. Other than that, his methodology seems reasonable enough. Here’s how Virginia’s three main Metropolitan Statistical Areas (MSAs) ranked nationally:
You can view his snapshots of Virginia’s major metro areas here:
Washington
Hampton Roads
Richmond
Interestingly, on a national level the MSAs with the strongest zoning restrictions, greatest gaps in housing costs, economic segregation and test score gaps between rich and poor tend to be the most liberal. As seen in the map above, the greatest gaps exist in large, Northeastern MSAs. The most egalitarian metros are clustered in central Florida.
Do liberal Northeastern elites deliberately pursue policies that foster racial segregation and inequality? To put it more bluntly, are liberal elites closet racists? As tempted as I am to make that argument because I’m so sick of liberals labeling conservatives as racist on the basis of flimsy data, I just can’t justify it. I’m more inclined to chalk up the segregation to the law of unintended consequences. Liberals pass laws and enact policies with the purest of intentions — and remain oblivious to the outcomes.
When it comes to zoning restrictions (or the prevalence of land-use attorneys), Virginia’s metros rank in the middle nationally. Richmond is more segregated than the national average, Hampton Roads less so. Richmond’s housing cost gap is 14th highest in the nation, Washington’s 20th lowest. Consistent with Rothwell’s thesis, Richmond schools show higher test score gaps than Washington and Hampton Roads schools — though the gap is considerably lower than predicted by the level of economic and housing segregation.
It’s interesting data. Make of it what you will.
