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Language proficiency and homeownership: Evidence from U.S. immigrants

Author

Listed:
  • Luik, Marc-André
  • Steinhardt, Max Friedrich
  • Voss, Simon

Abstract

In this paper we deliver first causal evidence on the relationship between immigrant host country language proficiency and homeownership. Using an instrumental variable strategy, we find a substantial positive impact of language skills on the propensity to own a home and the quality of housing. While this effect is mediated by education and household income, our estimates also speak in favor of a direct effect. Our results highlight the importance of host-country-specific human capital and, in particular, language proficiency for socio-economic assimilation.

Suggested Citation

  • Luik, Marc-André & Steinhardt, Max Friedrich & Voss, Simon, 2023. "Language proficiency and homeownership: Evidence from U.S. immigrants," Discussion Papers 2023/3, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:20233
    DOI: 10.17169/refubium-38193
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    More about this item

    Keywords

    language; immigrants; assimilation; homeownership;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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