The centralization index: A measure of local spatial segregation

Segregated areas may occur around an attractive park or a waste incinerator, but the magnitude and group membership of the people in closest proximity will likely be difierent. We therefore introduce a local segregation measure that can be applied to any location within a metropolitan area, and that can identify the group that is relatively more concentrated around that reference location. We further introduce an inference approach to identify the statistical significance of a particular segregation value. In an exploratory setting the index can be used to generate a map of hot spots, and seed the question: “why is this group significantly concentrated around that location?”