@techreport{NBERw5566,
 title = "How Much Does Sorting Increase Inequality?",
 author = "Michael Kremer",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5566",
 year = "1996",
 month = "May",
 URL = "http://www.nber.org/papers/w5566",
 abstract = {Social commentators from William Julius Wilson to Charles Murray have argued that increased sorting of people into internally homogeneous" neighborhoods,schools, and marriages is spurring long-run inequality.  Cali- bration of a formal model suggests that these fears are misplaced.  In order to increase the steady-state standard deviation of education by one percent, the correlation between neighbors' education would have to double, or the correlation between spouses' education would have to increase by one-third. In fact, both correlations have declined slightly over the past few decades. Sorting has somewhat more significant effects on intergenerational mobility than on inequality."},
}