International Journal of Drug Policy - 2014

Volume 25 Issue 3 May 2014

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D. Rosenblum et al. / International Journal of Drug Policy 25 (2014) 543–555 551 Table 1 OLS: relationship between segregation measures, geography, and Colombian heroin saturation. (1) (2) (3) (4) (5) Hispanic Dis. Index 1990 0.5504 −0.8787 0.0745 (0.5386) (0.7459) (0.2776) High P.R. Segregation City 0.3859 ** 0.6023 ** (0.1445) (0.2306) Low P.R. Segregation City −0.0543 0.1734 (0.2059) (0.2086) East 0.6565 *** (0.0844) Center 0.3016 *** (0.0888) R-Squared 0.0521 0.2730 0.0037 0.3313 0.7923 Observations 21 21 21 21 21 Notes: Standard errors are reported in parentheses. The dependent variable is the Colombian Heroin Saturation Index. The Hispanic Dissimilarity Index is for Hispanic/Latino with white non-Hispanic as the reference group. High Puerto Rican Segregation Cities are Boston, Chicago, Newark, and Philadelphia. Low Puerto Rican Segregation Cities are Los Angeles, Miami, and San Diego. The omitted region is West. East = Atlanta, Baltimore, Boston, Miami, New York, Newark, Philadelphia, and Washington, DC. Center = Chicago, Dallas, Detroit, Houston, New Orleans, and St. Louis. West = Denver, Los Angeles, Oakland, Phoenix, San Diego, San Francisco, and Seattle. Significance levels: * p < 0.1, ** p < 0.05, *** p < 0.01. By contrast, nearby Baltimore and Washington, DC have high lev- els of African-American segregation and poverty but very small Puerto Rican populations and have heroin with significantly lower purity (data not reported). These cities coincide with our hypoth- esis: Colombian heroin entered the US through highly segregated Puerto Rican communities on the East Coast. Miami is also in the cluster of cities with a high CHSI but has a lower level of Hispanic and Puerto Rican segregation. One might expect Miami to be an outlier because it is the closest major city on the US mainland to heroin trafficking routes through the Caribbean. It is also the airline and maritime hub for the entire Caribbean as well as most of the Atlantic Coast nations of South America. It has larger and more diverse Latino communities, including Cubans, Colombians and Puerto Ricans, than most other US cities (Stepick, 1994). Geographic location may also explain New Orleans' high CHSI but low level of Hispanic segregation as this port city is a his- toric center for Caribbean and South American maritime/shipping routes. Chicago's middle level of CHSI but high Hispanic and Puerto Rican segregation is likely due to the mix of heroin it receives from Mexican and Colombian sources which is probably the result of its historic strategic geographic location as a cross-continental trans- port gateway. Quantitative evidence 2.2: the relationship between heroin price and segregation After establishing that there is a connection between segrega- tion, geographic location, and the spread of Colombian heroin, we investigate how segregation relates to the price of heroin. Table 2 shows the OLS estimates of the correlation between Hispanic or black segregation in 1990 and the average price-per-expected- pure gram of heroin over three different time periods: 1990–1992 when Colombian heroin began to enter the US; 1993–2000 the years when Colombian heroin saturated most of the eastern US Fig. 4. Red squares indicate MSAs with a high level of Puerto Rican segregation, orange diamonds indicate MSAs with a low level of Puerto Rican segregation, and small blue dots indicate that the Puerto Rican population is too small in these MSAs to warrant segregation measurement. Large black city abbreviations indicate the eastern US, medium green city abbreviations indicate the central US, and small blue city abbreviations indicate the western US (Atlanta = Atl, Baltimore = Bal, Boston = Bos, Chicago = Chi, Dallas = Dal, Denver = Den, Detroit = Det, Houston = Hou, Los Angeles = LA, Miami = Mia, New Orleans = NO, New York = NY, Newark = Nwk, Oakland = Oak, Phoenix = Phx, Philadelphia = Phi, San Diego = SD, San Francisco = SF, Seattle = Sea, St. Louis = StL, Washington, DC = WDC).

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