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Residential segregation primarily indicates the separation of social groups into different locations, which can be based on various demographics such as race, ethnicity, income, or other socio-economic factors. This phenomenon results in distinct geographic areas where specific groups reside, often leading to significant disparities in access to resources, services, and opportunities.

Such segregation can arise from a combination of systemic factors including discriminatory practices in housing, economic disparities, and social preferences. This separation has profound implications on community dynamics, influencing aspects such as education, employment, health outcomes, and social interactions among different groups.

The concept underscores the complex interplay between socio-economic status, race, and geographic distribution, emphasizing that the spatial arrangement of communities can significantly impact individuals' life chances and the overall social fabric of society. Thus, recognizing residential segregation is critical for understanding broader social issues and formulating initiatives aimed at promoting equality and integration.