We describe the empirical relationship between local government boundaries and residential segregation in the United States. First, we study recent changes in the distribution of segregation within and between local governments in all metropolitan areas, using census block data on residential demographics over the period 1990–2020. We find that segregation across local government boundaries explains a substantial share of racial stratification, which has changed only little over the last thirty years. Next, we use spatial regression discontinuity methods to distinguish between household sorting due to neighborhood amenities and public goods provided by local governments. The prevalence of demographic discontinuities at local government boundaries suggest that between-jurisdiction segregation patterns cannot be explained solely by proximity to neighborhood amenities. We discuss implications for policy, showing that both between-jurisdiction segregation and jurisdictional discontinuities can partly explain the correlation between total segregation and racial gaps in educational outcomes.

We study school facility investments using administrative records from Los Angeles. Exploiting quasi-random variation in the timing of new facility openings and using a residential assignment instrument, we find positive impacts on test scores, attendance, and house prices. Effects are not driven by changes in class size, peers, teachers, or principals, but some evidence points toward increased facility quality. We evaluate program efficiency using implied future earnings and housing capitalization. For each dollar spent, the program generated $1.62 in household value, with about 24 percent coming directly through test score gains and 76 percent from capitalization of non-test-score amenities.

We provide descriptive evidence on the level and within-state distribution of school capital expenditures over the past two decades. We relate these to the fiscal institutions governing capital funding across states. Within-state differences in capital expenditures between the highest- and lowest-income school districts fell considerably following the Great Recession. Spending declined in the highest-income districts, while state support for low-income districts remained stable. Suggestive evidence points to the importance of constraints on districts' ability to raise local funding and the structure of state support in explaining these differences and trends over time.