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Sorting or Steering: The Effects of Housing Discrimination on Neighborhood Choice

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  • Peter Christensen
  • Christopher Timmins

Abstract

Growing evidence indicates that neighborhoods affect human capital accumulation, raising concern that the exclusionary effects of housing discrimination could contribute to persistent inequality in the United States. Using data from HUD’s most recent Housing Discrimination Study and microlevel data on neighborhood attributes in 28 US cities, we find that minorities are steered toward neighborhoods with less economic opportunity and greater exposures to crime and pollution. Holding preferences and income constant, discriminatory steering alone can explain a disproportionate number of minority households found in high-poverty neighborhoods in the United States and the higher exposure of African American mothers to toxic pollutants.

Suggested Citation

  • Peter Christensen & Christopher Timmins, 2022. "Sorting or Steering: The Effects of Housing Discrimination on Neighborhood Choice," Journal of Political Economy, University of Chicago Press, vol. 130(8), pages 2110-2163.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/720140
    DOI: 10.1086/720140
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    Cited by:

    1. Anthony Lepinteur & Giorgia Menta & Sofie R. Waltl, 2023. "Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market," LISER Working Paper Series 2023-09, Luxembourg Institute of Socio-Economic Research (LISER).
    2. Aguilar-Gómez , Sandra & Cárdenas, Juan Camilo & Salas Díaz, Ricardo, 2024. "Environmental Justice Beyond Race: Skin Tone and Exposure to Air Pollution," Documentos CEDE 21042, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Andrew Hanson & Zackary Hawley, 2023. "Restricted access: Real estate agent response to client race, ethnicity, gender, and side of market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(4), pages 855-890, July.
    4. Joakim A. Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Finance and Economics Discussion Series 2023-066, Board of Governors of the Federal Reserve System (U.S.).
    5. Joakim Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Working Papers 2023.10, FAERE - French Association of Environmental and Resource Economists.
    6. Campa, Pamela & Muehlenbachs, Lucija, 2021. "Addressing Environmental Justice through In-Kind Court Settlements," CEPR Discussion Papers 16293, C.E.P.R. Discussion Papers.

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