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Language, Agglomeration, and Hispanic Homeownership

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  • Donald Haurin

    ()
    (Department of Economics, Ohio State University)

  • Stuart Rosenthal

    ()
    (Department of Economics, Syracuse University)

Abstract

As of the fourth quarter of 2005, 76 percent of white non-Hispanic families owned homes, but only 50 percent of Hispanic families. We argue that low rates of homeownership in Hispanic communities create a self-reinforcing mechanism that contributes to this large disparity. In part, this occurs because proximity to other homeowners belonging to a family’s social network improves access to information about how to become a homeowner. Role model effects may also be relevant. We investigate these issues using household-level data on out-of-state movers from the 2000 Decennial Census. Three especially important results are obtained. First, proximity to Hispanic homeowners in the 1995 place of residence increases the propensity of a Hispanic family to own a home in 2000. Second, that effect is especially strong with respect to proximity to weak English speaking Hispanic homeowners. Third, these patterns hold regardless of the Hispanic family’s own ability to speak English. From a policy perspective, these results suggest that local programs designed to promote homeownership among weak English-speaking Hispanic families likely increase Hispanic homeownership beyond just the immediate program participants.

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Bibliographic Info

Paper provided by Ohio State University, Department of Economics in its series Working Papers with number 07-04.

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Length: 41 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:osu:osuewp:07-04

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Keywords: Language; Agglomeration; Homeownership;

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  8. Joel Waldfogel, 2006. "The Median Voter and the Median Consumer: Local Private Goods and Residential Sorting," NBER Working Papers 11972, National Bureau of Economic Research, Inc.
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  11. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 14, Center for Policy Research, Maxwell School, Syracuse University.
  12. Julian R. Betts & Darlene Morell, 1999. "The Determinants of Undergraduate Grade Point Average: The Relative Importance of Family Background, High School Resources, and Peer Group Effects," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 268-293.
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  16. Coulson, N. Edward, 1999. "Why Are Hispanic- and Asian-American Homeownership Rates So Low?: Immigration and Other Factors," Journal of Urban Economics, Elsevier, vol. 45(2), pages 209-227, March.
  17. Lauren Krivo, 1995. "Immigrant characteristics and Hispanic-Anglo housing inequality," Demography, Springer, vol. 32(4), pages 599-615, November.
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Cited by:
  1. Zorlu, Aslan & Mulder, Clara H. & van Gaalen, Ruben, 2014. "Ethnic Disparities in the Transition to Home Ownership," IZA Discussion Papers 8039, Institute for the Study of Labor (IZA).
  2. Coulson, N. Edward & Dalton, Maurice, 2010. "Temporal and ethnic decompositions of homeownership rates: Synthetic cohorts across five censuses," Journal of Housing Economics, Elsevier, vol. 19(3), pages 155-166, September.

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