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Summary Of: Are Immigrants Buying to Get In?: The Role of Ethnic Clustering on the Homeownership Propensities of 12 Toronto Immigrant Groups, 1996-2001

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Haan, Michael
Abstract

This article summarizes findings from the research paper entitled Are immigrants buying to get in? The role of ethnic clustering on the homeownership propensities of 12 Toronto immigrant groups, 1996-2001. Spatial assimilation theory is a model of status attainment that links the spatial and social positions of minority group members (Massey and Denton 1985). If applied to immigrants, the model would suggest that immigrants would first cluster in typically poor neighbourhoods with high concentrations of co-ethnics, but that ethnic concentration should be temporary and of declining utility. Once an immigrant family's socioeconomic status improves, they should merge into the residential 'mainstream' by moving to a better, and typically less segregated, neighbourhood (Massey and Denton 1985). Further, although housing tenure is not an explicit dimension of spatial assimilation theory, given the well-established relationship between income, human capital and homeownership (Balakrishnan and Wu 1992; Laryea 1999), and the importance of homeownership as an indicator of well-being and residential assimilation (Myers and Lee 1998), part of an immigrant family's socioeconomic ascent should be a shift from tenant to homeowner (Alba and Logan 1992). Spatial assimilation theory would further predict that same-group concentration should be inversely related to homeownership since ethnic enclaves are typically conceived of as poor rental zones (Fong and Gulia 1999; Myles and Hou 2004). Recent research (Alba and Nee 2003; Logan, Alba, and Zhang 2002), however, finds that some immigrant groups may be choosing against spatial assimilation to form more durable 'ethnic communities' (Logan, Alba, and Zhang 2002), giving rise to a positive and growing 'enclave effect' on homeownership (Borjas 2002). In this paper, an enclave effect is evaluated as an explanation for the 1996-2001 homeownership patterns of Toronto's 12 largest recent immigrant groups. Using longitudinally-consistent

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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2005253e.

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Date of creation: 26 May 2005
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Handle: RePEc:stc:stcp3e:2005253e

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Boyes, William J. & Hoffman, Dennis L. & Low, Stuart A., 1989. "An econometric analysis of the bank credit scoring problem," Journal of Econometrics, Elsevier, vol. 40(1), pages 3-14, January. [Downloadable!] (restricted)
  2. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November. [Downloadable!] (restricted)
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September. [Downloadable!] (restricted)
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  5. William H. Greene, 1992. "A Statistical Model for Credit Scoring," Working Papers 92-29, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
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