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Rental Housing Discrimination and the Persistence of Ethnic Enclaves

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Author Info

  • Bosch, Mariano

    ()
    (Inter-American Development Bank)

  • Carnero, M. Angeles

    ()
    (Universidad de Alicante)

  • Farré, Lídia

    ()
    (IAE Barcelona (CSIC))

Abstract

We conduct a field experiment to show that discrimination in the rental market represents a significant obstacle for the geographical assimilation process by immigrants. We employ the Internet platform to identify vacant rental apartments in different areas of the two largest Spanish cities, Madrid and Barcelona. We send emails showing interest in the apartments and signal the applicants' ethnicity by using native and foreign-sounding names. We find that, in line with previous studies, immigrants face a differential treatment when trying to rent an apartment. Our results also indicate that this negative treatment varies considerably with the concentration of immigrants in the area. In neighborhoods with a low presence of immigrants the response rate is 30 percentage points lower for immigrants than for natives, while this differential disappears when the immigration share reaches 50%. We conclude that discriminatory practices in the rental housing market contribute to perpetuate the ethnic spatial segregation observed in large cities.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5583.

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Length: 34 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5583

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Keywords: immigration; discrimination; spatial segregation;

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References

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  1. Bosch, Mariano & Carnero, M. Angeles & Farré, Lídia, 2010. "Information and discrimination in the rental housing market: Evidence from a field experiment," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 11-19, January.
  2. Christian Dustmann & Ian Preston, 2000. "Racial and Economic Factors in Attitudes to Immigration," Econometric Society World Congress 2000 Contributed Papers 0839, Econometric Society.
  3. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Enclaves, Language and the Location Choice of Migrants," IZA Discussion Papers 558, Institute for the Study of Labor (IZA).
  4. Lidia Farre & Libertad Gonzalez & Francesc Ortega, 2009. "Immigration, Family Responsibilities and the Labor Supply of Skilled Native Women," CReAM Discussion Paper Series 0916, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. Raquel Carrasco & Juan F. Jimeno & Ana Carolina Ortega, 2004. "The Effect Of Immigration On The Employment Opportunities Of Native-Born Workers: Some Evidence For Spain," Economics Working Papers we046122, Universidad Carlos III, Departamento de Economía.
  6. Bauer, Thomas & Epstein, Gil S & Gang, Ira, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the US," CEPR Discussion Papers 3505, C.E.P.R. Discussion Papers.
  7. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-88, May.
  8. Cuberes, David & Dougan, William, 2009. "How Endogenous Is Money? Evidence from a New Microeconomic Estimate," MPRA Paper 17744, University Library of Munich, Germany.
  9. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 2005. "Is the Melting Pot Still Hot? Explaining the Resurgence of Immigrant Segregation," Harvard Institute of Economic Research Working Papers 2071, Harvard - Institute of Economic Research.
  10. Ali M. Ahmed & Lina Andersson & Mats Hammarstedt, 2010. "Can Discrimination in the Housing Market Be Reduced by Increasing the Information about the Applicants?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 79-90.
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  12. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1997. "The Rise and Decline of the American Ghetto," NBER Working Papers 5881, National Bureau of Economic Research, Inc.
  13. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
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  15. Libertad González Luna & Francesc Ortega, 2007. "How do very open economies adjust to large immigration flows? Recent evidence from Spanish regions," Economics Working Papers 1059, Department of Economics and Business, Universitat Pompeu Fabra.
  16. Ahmed, Ali M. & Hammarstedt, Mats, 2008. "Discrimination in the rental housing market: A field experiment on the Internet," Journal of Urban Economics, Elsevier, vol. 64(2), pages 362-372, September.
  17. David Card & Alexandre Mas & Jesse Rothstein, 2007. "Tipping and the Dynamics of Segregation," NBER Working Papers 13052, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Sara de la Rica & Albretch Glitz & Francesc Ortega, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," Working Papers 2013-16, FEDEA.
  2. Verena Dill & Uwe Jirjahn, 2011. "Ethnic Residential Segregation and Immigrants' Perceptions of Discrimination in West Germany," SOEPpapers on Multidisciplinary Panel Data Research 416, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Verena Dill & Uwe Jirjahn & Georgi Tsertvadze, 2011. "Residential Segregation and Immigrants' Satisfaction with the Neighborhood in Germany," SOEPpapers on Multidisciplinary Panel Data Research 410, DIW Berlin, The German Socio-Economic Panel (SOEP).

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