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The ghetto is a constrained area occupied almost exclusively by members of an ostracized group, generally black, and within which nearly all members of that group are constrained to live. Black ghettos are doubly exclusive: nearly all blacks are in it; nearly all in it are black. The process of ghetto formation has important implications for consumption in terms of unequal access to housing and other vital services such as education.

In South Africa, under its apartheid regime, racial and ethnic segregation was rigorously legislated. Cities were zoned to separate each racial group. Black townships, such as Johannesburg's Soweto, were established distant from the city in which the Africans worked to not blight white urban expansion in their direction.

The term ghetto originated in medieval Venice, where it applied to the Jewish quarter to which Jews were obliged to return by nightfall. However, it became a generic name for such areas in medieval towns. In nineteenth- and twentieth-century Poland, they were referred to as shtetls, though these were small Jewish market towns.

Difference between Ghettos and Ethnic Enclaves

There are major differences between ethnic enclaves and ghettos. The key examples are the differences between the African American ghetto and the European immigrant ethnic enclaves within U.S. cities. Robert Park, cofounder and influential leader of the Chicago School of Sociology, saw the black ghetto as just another example of the generic ethnic enclaves like Little Italy. However, Thomas Philpott demonstrated that for Chicago in the 1930s, the black ghetto differed in kind from Park's ethnic “ghettos.” Black ghettos were homogeneously black; they were doubly concentrated: 93 percent of Chicago's black population lived in the black ghetto, where they accounted for 82 percent of the population. Even in 2000, 71 percent of Chicago's black population lived in tracts that were between 70 and 100 percent black. The ethnic enclaves, in contrast, were mixed and diluted. For example, only 2 percent of the Irish lived in the Irish enclave, and they accounted for only a third of the enclave's population. Just under a half of the Italians lived in Chicago's Italian enclaves, where they formed less than half of the population.

Thus, ghettos were enforced; enclaves were voluntary. Conventionally, ghettos are considered negative and threatening, enclaves as positive and touristic; the ghetto is viewed as a prison, the enclave a springboard. Therefore, ghettos persist, enclaves dissolve. In recent times, ghetto has misleadingly been applied to almost any area of ethnic concentration rather than to areas meeting the dual criteria mentioned previously.

Race or Poverty?

Ghettos are associated with poverty, poor housing, crime, and dysfunctional social life. However, their key characteristic is race. Some sociologists have represented ghettos as concentrations of poor people who happen to be black. However, many studies demonstrate that race, not income, is the defining characteristic. One of the most important demonstrations was made by Karl Taeuber and Alma Taeuber. They calculated for Chicago in 1960 that black-white income differences “explained” only 12 percent of the very high level of black segregation. Work by Douglas Massey and Nancy Denton shows that for thirty metropolitan areas in the United States between 1970 and 1980, wealth made no difference to the very high level of segregation between blacks and whites with high incomes, blacks and whites with medium incomes, and blacks and white with low incomes.

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