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This study provides a framework for understanding how population composition conditions the relationship between individuals� choices about group affiliation and aggregate patterns of social separation or integration. The substantive focus is the role of income inequality in racial residential segregation. The author identifies three population parameters�between-group inequality, within-group inequality, and relative group size�that determine how income inequality between race groups affects racial segregation. She uses data from the Panel Study of Income Dynamics to estimate models of individual-level residential mobility and incorporates these estimates into agent-based models. She then simulates segregation dynamics under alternative assumptions about (1) the relative size of minority groups and (2) the degree of correlation between race and income among individuals. The author finds that income inequality can have offsetting effects at the high and low ends of the income distribution. She demonstrates the empirical relevance of the simulation results using fixed-effects, metro-level regressions applied to 1980�2000 U.S. census data.
