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Racial Differences in Homeownership: The Effect of Residential Location

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  • Yongheng Deng

    (University of Southern California)

  • Stephen L. Ross

    (University of Connecticut)

  • Susan M. Wachter

    (University of Pennsylvania)

Abstract

The rate of homeownership among African-American households is considerably lower than white households in American urban areas. This paper examines whether racial differneces in residential location outcomes are among the factors that contribute to the large racial differences in homeownership rates in major US metropolitan areas. Based on the 1985 metropolitan sample of the American Housing Survey for Philadelphia, the paper does not find any evidence that existing racial differences in residential location in Philadelphia decrease the homeownership rate among African Americans. Rather, the empirical evidence suggests that African-American residential location outcomes are associated with lower than expected racial differences in homeownership. Therefore, after controlling for neighborhood, racial differences in homeownership are larger than originally believed, and the ability of racial differences in endowments to explain hoeownership differences is more limited.

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Bibliographic Info

Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2002-05.

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Length: 56 pages
Date of creation: Jul 2002
Date of revision:
Publication status: Forthcoming in Regional Science and Urban Economics
Handle: RePEc:uct:uconnp:2002-05

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Web page: http://www.econ.uconn.edu/
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Keywords: Homeownership; Residential Location; Race; Credit Constraints; Equity Risk;

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References

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Citations

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Cited by:
  1. Ross, Stephen L. & Zenou, Yves, 2004. "Shirking, Commuting and Labor Market Outcomes," Working Paper Series 627, Research Institute of Industrial Economics.
  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.
  3. Ross, Stephen L. & Zenou, Yves, 2008. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages based on Urban Economic Theory," CEPR Discussion Papers 6841, C.E.P.R. Discussion Papers.
  4. Sigal Kaplan & Yoram Shiftan & Shlomo Bekhor, 2011. "A Semi-Compensatory Residential Choice Model With Flexible Error Structure," ERSA conference papers ersa10p65, European Regional Science Association.
  5. Stephen L. ROSS, 2003. "Ségrégation and Racial Preferences: New Theoretical and Empirical Approaches," Annales d'Economie et de Statistique, ENSAE, issue 71-72, pages 143-172.
  6. Maude Toussaint-Comeau & Sherrie L.W. Rhine, 2003. "Tenure choice with location selection: the case of Hispanic neighborhoods in Chicago," Working Paper Series WP-03-05, Federal Reserve Bank of Chicago.
  7. John Yinger, 2009. "Hedonic Markets and Explicit Demands: Bid-Function Envelopes for Public Services, Neighborhood Amenities, and Commuting Costs," Center for Policy Research Working Papers 114, Center for Policy Research, Maxwell School, Syracuse University.
  8. Justin Quear & Wallace E. Tyner, 2006. "Development Of Variable Ethanol Subsidy And Comparison With The Fixed Subsidy," Working Papers 06-16, Purdue University, College of Agriculture, Department of Agricultural Economics.
  9. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer, vol. 47(1), pages 51-80, August.
  10. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
  11. Carrillo, Paul & Yezer, Anthony, 2009. "Alternative measures of homeownership gaps across segregated neighborhoods," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 542-552, September.
  12. Sherrie L.W. Rhine & Maude Toussaint-Comeau, 2004. "The relationship between Hispanic residential location and homeownership," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 2-12.
  13. Hilber, Christian A. L. & Liu, Yingchun, 2007. "Explaining the Black-White Homeownership Gap: The Role of Own Wealth, Parental Externalities and Locational Preferences," MPRA Paper 5136, University Library of Munich, Germany.
  14. Dawkins, Casey J., 2005. "Racial gaps in the transition to first-time homeownership: The role of residential location," Journal of Urban Economics, Elsevier, vol. 58(3), pages 537-554, November.
  15. Maria I. Marshall, 2006. "Who Chooses To Own A Manufactured Home ?," Working Papers 06-12, Purdue University, College of Agriculture, Department of Agricultural Economics.

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