Rubbing shoulders: Class segregation in daily activities

Abstract

We use location data to study cross-class encounters. Low-income and especially high-income individuals are socially isolated: they are more likely than other income groups to encounter people from their own class. Counterfactual exercises suggest this is explained largely by residential segregation and firms. Among firms, casual restaurants make the largest positive contribution to cross-class encounters through both scale and their diversity of visitors. Dollar stores and libraries isolate visitors. Our local measure of encounters is strongly associated with cross-class Facebook friendships, which have been previously shown to correlate with intergenerational mobility.