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Evidence of Racial Discrimination in Different Dimensions of Owner‐Occupied Housing Search

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  • Canopy Roychoudhury
  • Allen C. Goodman

Abstract

This paper examines the incidence and extent of racial discrimination in various dimensions of owner‐occupied housing search. Audit data for sales units (1980‐90) from the Fair Housing Center of metropolitan Detroit is used in an ordered probit framework. Agents' own prejudices and the prejudices of their customers are shown to be significant in explaining discrimination. Results also indicate that white home seekers are steered toward more white and affluent neighborhoods.

Suggested Citation

  • Canopy Roychoudhury & Allen C. Goodman, 1996. "Evidence of Racial Discrimination in Different Dimensions of Owner‐Occupied Housing Search," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 24(2), pages 161-178.
    • Handle: RePEc:bla:reesec:v:24:y:1996:i:2:p:161-178
    DOI: 10.1111/1540-6229.00685
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    1. John F. Kain & John M. Quigley, 1975. "Introduction to "Housing Markets and Racial Discrimination: A Microeconomic Analysis"," NBER Chapters, in: Housing Markets and Racial Discrimination: A Microeconomic Analysis, pages 1-8, National Bureau of Economic Research, Inc.
    2. John F. Kain & John M. Quigley, 1975. "Housing Markets and Racial Discrimination: A Microeconomic Analysis," NBER Books, National Bureau of Economic Research, Inc, number kain75-1.
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    Cited by:

    1. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Racial and ethnic discrimination in local consumer markets: Exploiting the army's procedures for matching personnel to duty locations," Journal of Urban Economics, Elsevier, vol. 64(2), pages 496-509, September.
    2. Laouénan, Morgane, 2014. "'Can't Get Enough': Prejudice, Contact Jobs and the Racial Wage Gap in the US," IZA Discussion Papers 8006, Institute of Labor Economics (IZA).
    3. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    4. Julie Le Gallo & Yannick L'Horty & Loïc du Parquet & Pascale Petit, 2017. "Les discriminations dans l’accès au logement en France : Un testing de couverture nationale," TEPP Research Report 2017-11, TEPP.
    5. Jan Ondrich & Stephen Ross & John Yinger, 2003. "Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 854-873, November.
    6. Mathieu Bunel & Samuel Gorohouna & Yannick L’Horty & Pascale Petit & Catherine Ris, 2019. "Ethnic Discrimination in the Rental Housing Market: An Experiment in New Caledonia," International Regional Science Review, , vol. 42(1), pages 65-97, January.
    7. Sylvain Chareyron & Samuel Gorohouna & Yannick L'Horty & Pascale Petit & Catherine Ris, 2019. "Seeking for tipping point in the housing market : evidence from a field experiment," Working Papers hal-02334132, HAL.
    8. 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.
    9. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003.
    10. Jan Ondrich & Alex Stricker & John Yinger, 1998. "Do Real Estate Brokers Choose to Discriminate? Evidence from the 1989 Housing Discrimination Study," Southern Economic Journal, John Wiley & Sons, vol. 64(4), pages 880-901, April.
    11. John Yinger, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 23-40, Spring.
    12. Ahmed, Ali M. & Hammarstedt, Mats, 2008. "Discrimination in the rental housing market: A field experiment on the Internet," Journal of Urban Economics, Elsevier, vol. 64(2), pages 362-372, September.
    13. 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.
    14. Mourelatos, Evangelos & Oikarinen, Elias, 2023. "Ethnic discrimination during wartime: Evidence from a field experiment in the Finnish housing market," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    15. Ahmed, Ali & Hammarstedt, Mats, 2007. "Discrimination in the housing market — a field experiment on the internet," CAFO Working Papers 2007:1, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    16. Umar Abdullahi Ahmed & Most Asikha Aktar & Md Mahmudul Alam, 2021. "Racial Discrimination and Poverty Reduction for Sustainable Development," Post-Print hal-03520071, HAL.
    17. Ahmed, Ali M. & Andersson, Lina & Hammarstedt, Mats, 2008. "Are lesbians discriminated against in the rental housing market? Evidence from a correspondence testing experiment," Journal of Housing Economics, Elsevier, vol. 17(3), pages 234-238, September.
    18. Ondrich, Jan & Ross, Stephen L. & Yinger, John, 2000. "How Common is Housing Discrimination? Improving on Traditional Measures," Journal of Urban Economics, Elsevier, vol. 47(3), pages 470-500, May.
    19. Koppensteiner, Martin Foureaux & Oliveira, Tania & Rohith, Nikitha, 2022. "Testing for Discrimination in Rental Markets: Experimental Evidence from the UK," IZA Discussion Papers 15460, Institute of Labor Economics (IZA).

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