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Discrimination in Europe. Evidence from the Rental Market

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  • Timothy K.M. Beatty
  • Dag Einar Sommervoll

    ()
    (Statistics Norway)

Abstract

This paper considers statistical discrimination in rental markets, using a rich data set on rental contracts from Norway. We find that tenants born abroad pay a statistically significant and economically important premium for their dwelling units after controlling for a comprehensive set of apartment, individual and contract specific covariates. We also find that the premium is largest for tenants of African origin. Moreover, the children of parents born abroad also face a statistically significant and economically important rental premium.

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Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 547.

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Date of creation: Jun 2008
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Handle: RePEc:ssb:dispap:547

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Keywords: Statistical Discrimination; Rental Markets; Hedonic Regression;

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  1. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 201-45, April.
  2. Allen C. Goodman & Masahiro Kawai, 1985. "Length-of-Residence Discounts and Rental Housing Demand: Theory and Evidence," Land Economics, University of Wisconsin Press, vol. 62(2), pages 93-105.
  3. Shelly Lundberg & Richard Startz, 1998. "Race, Information, and Segregation," Working Papers 0047, University of Washington, Department of Economics.
  4. Schwab, Stewart, 1986. "Is Statistical Discrimination Efficient?," American Economic Review, American Economic Association, vol. 76(1), pages 228-34, March.
  5. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
  6. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  7. Ondrich, Jan & Stricker, Alex & Yinger, John, 1999. "Do Landlords Discriminate? The Incidence and Causes of Racial Discrimination in Rental Housing Markets," Journal of Housing Economics, Elsevier, vol. 8(3), pages 185-204, September.
  8. Hubert, Franz, 1995. "Contracting with costly tenants," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 631-654, October.
  9. Choi, Seok Joon & Ondrich, Jan & Yinger, John, 2005. "Do rental agents discriminate against minority customers? Evidence from the 2000 Housing Discrimination Study," Journal of Housing Economics, Elsevier, vol. 14(1), pages 1-26, March.
  10. Barker, David, 2003. "Length of residence discounts, turnover, and demand elasticity. Should long-term tenants pay less than new tenants?," Journal of Housing Economics, Elsevier, vol. 12(1), pages 1-11, March.
  11. Madeline Marsden, 1994. "Board issues fair lending policy statement," Financial Update, Federal Reserve Bank of Atlanta, issue Jan, pages 1, 3.
  12. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  13. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
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