Tolerance to diversity and residential segregation. An adaptation of the Schelling segregation model with three social groups

Usually, segregation is conceptualized as the consequence of people’s preferences to live close to people similar to them. However, evidence shows something different. While it is true that people want to have neighbors such as themselves, the intensity of this preference -the proportion of similar neighbors they desire to have - varies among individuals and groups. Nonetheless, following Schelling (1971), the aggregated result of people’s interaction in the land market generates levels of segregation higher than individual preferences. This article explores a variation of the Schelling model: While the original model works with two groups, this paper incorporates a third social group, to which it is indifferent to contact with the other two groups. Results show that the presence of this third group generates a decrease of levels of segregation in the city, favoring residential integration.