IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v35y2017icp26-36.html
   My bibliography  Save this article

Contexts and conditions of ethnic discrimination: Evidence from a field experiment in a German housing market

Author

Listed:
  • Auspurg, Katrin
  • Hinz, Thomas
  • Schmid, Laura

Abstract

People's housing conditions and places of residence have serious impacts on individual well-being and social stratification. This article focuses on different forms of ethnic discrimination in the rental housing market. Several hypotheses on statistical discrimination, spatial steering, and discrimination by price were tested by a field experiment in Germany that was unique regarding both the amount of information available on rental units and on ethnic composition of neighborhoods. For 637 rental objects, two e-mail inquiries were sent out with applicants having German or Turkish names and varying occupations. Logistic random intercept regressions revealed a discrimination rate against Turkish applicants of 9 percentage points. Indicating a high occupational status in the application reduced this discrimination rate significantly, but private landlords tended to disregard status and discriminate by migration background only. Surprisingly, the discrimination against Turkish applicants was the strongest when the proportion of Turkish residents living in the neighborhood was highest. German applicants were particularly favored over Turks when making applications for reasonably priced objects. These results point to both core mechanisms driving discrimination (preference and information) being relevant, but in different market segments.

Suggested Citation

  • Auspurg, Katrin & Hinz, Thomas & Schmid, Laura, 2017. "Contexts and conditions of ethnic discrimination: Evidence from a field experiment in a German housing market," Journal of Housing Economics, Elsevier, vol. 35(C), pages 26-36.
  • Handle: RePEc:eee:jhouse:v:35:y:2017:i:c:p:26-36
    DOI: 10.1016/j.jhe.2017.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137717300037
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jhe.2017.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ali M. Ahmed & Lina Andersson & Mats Hammarstedt, 2010. "Can Discrimination in the Housing Market Be Reduced by Increasing the Information about the Applicants?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 79-90.
    2. Nick Buck, 2001. "Identifying Neighbourhood Effects on Social Exclusion," Urban Studies, Urban Studies Journal Limited, vol. 38(12), pages 2251-2275, November.
    3. Olaf J. de Groot & Lutz Sager, 2010. "Migranten in Deutschland: soziale Unterschiede hemmen Integration," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 77(49), pages 2-9.
    4. Zhao, Bo & Ondrich, Jan & Yinger, John, 2006. "Why do real estate brokers continue to discriminate? Evidence from the 2000 Housing Discrimination Study," Journal of Urban Economics, Elsevier, vol. 59(3), pages 394-419, May.
    5. Susanne Urban, 2009. "Is the Neighbourhood Effect an Economic or an Immigrant Issue? A Study of the Importance of the Childhood Neighbourhood for Future Integration into the Labour Market," Urban Studies, Urban Studies Journal Limited, vol. 46(3), pages 583-603, March.
    6. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    7. Hanson, Andrew & Hawley, Zackary, 2011. "Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 99-114, September.
    8. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    9. David Neumark, 2012. "Detecting Discrimination in Audit and Correspondence Studies," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 1128-1157.
    10. Ioannides, Yannis M., 2002. "Residential neighborhood effects," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 145-165, March.
    11. George Galster, 1990. "Racial steering in urban housing markets: A review of the audit evidence," The Review of Black Political Economy, Springer;National Economic Association, vol. 18(3), pages 105-129, December.
    12. John Yinger, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 23-40, Spring.
    13. W. Clark, 1991. "Residential preferences and neighborhood racial segregation: A test of the schelling segregation model," Demography, Springer;Population Association of America (PAA), vol. 28(1), pages 1-19, February.
    14. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, Febrero.
    15. Anita I. Drever & William A. V. Clark, 2002. "Gaining Access to Housing in Germany: The Foreign Minority Experience," Discussion Papers of DIW Berlin 283, DIW Berlin, German Institute for Economic Research.
    16. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
    17. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, Oxford University Press, vol. 123(1), pages 177-218.
    18. Beatty, Timothy K.M. & Sommervoll, Dag Einar, 2012. "Discrimination in rental markets: Evidence from Norway," Journal of Housing Economics, Elsevier, vol. 21(2), pages 121-130.
    19. Pierre-Philippe Combes & Bruno Decreuse & Benoît Schmutz & Alain Trannoy, 2010. "The Neighbor is King: Customer Discrimination in the Housing Market," IDEP Working Papers 1003, Institut d'economie publique (IDEP), Marseille, France, revised Jun 2010.
    20. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, June.
    21. Sheppard, Stephen, 1999. "Hedonic analysis of housing markets," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 41, pages 1595-1635, Elsevier.
    22. George Galster, 1990. "Racial steering by real estate agents: Mechanisms and motives," The Review of Black Political Economy, Springer;National Economic Association, vol. 19(1), pages 39-63, June.
    23. Yinger, John, 1986. "Measuring Racial Discrimination with Fair Housing Audits: Caught in the Act," American Economic Review, American Economic Association, vol. 76(5), pages 881-893, December.
    24. Lisa Andersson & Niklas Jakobsson & Andreas Kotsadam, 2012. "A Field Experiment of Discrimination in the Norwegian Housing Market: Gender, Class, and Ethnicity," Land Economics, University of Wisconsin Press, vol. 88(2), pages 233-240.
    25. Bosch, Mariano & Carnero, M. Angeles & Farré, Lídia, 2010. "Information and discrimination in the rental housing market: Evidence from a field experiment," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 11-19, January.
    26. Zhao, Bo, 2005. "Does the number of houses a broker shows depend on a homeseeker's race?," Journal of Urban Economics, Elsevier, vol. 57(1), pages 128-147, January.
    27. repec:fth:prinin:*30a is not listed on IDEAS
    28. Page Marianne, 1995. "Racial and Ethnic Discrimination in Urban Housing Markets: Evidence from a Recent Audit Study," Journal of Urban Economics, Elsevier, vol. 38(2), pages 183-206, September.
    29. Anita I. Drever & William A. V. Clark, 2002. "Gaining Access to Housing in Germany: The Foreign-minority Experience," Urban Studies, Urban Studies Journal Limited, vol. 39(13), pages 2439-2453, December.
    30. King, A Thomas & Mieszkowski, Peter, 1973. "Racial Discrimination, Segregation, and the Price of Housing," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 590-606, May-June.
    31. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    32. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
    33. 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.
    34. Ragnar Bengtsson & Ellis Iverman & Björn Tyrefors Hinnerich, 2012. "Gender and ethnic discrimination in the rental housing market," Applied Economics Letters, Taylor & Francis Journals, vol. 19(1), pages 1-5, January.
    35. 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.
    36. Michael Ewens & Bryan Tomlin & Liang Choon Wang, 2014. "Statistical Discrimination or Prejudice? A Large Sample Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 119-134, March.
    37. Ethan Cohen-Cole, 2011. "Credit Card Redlining," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 700-713, May.
    38. Baldini, Massimo & Federici, Marta, 2011. "Ethnic discrimination in the Italian rental housing market," Journal of Housing Economics, Elsevier, vol. 20(1), pages 1-14, March.
    39. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
    40. Margery A. Turner & Stephen Ross & George C. Galster & John Yinger, 2002. "Discrimination in Metropolitan Housing Markets: National Results from Phase 1 of the Housing Discrimination Study (HDS)," Working papers 2002-16, University of Connecticut, Department of Economics.
    41. Hanson, Andrew & Hawley, Zackary & Taylor, Aryn, 2011. "Subtle discrimination in the rental housing market: Evidence from e-mail correspondence with landlords," Journal of Housing Economics, Elsevier, vol. 20(4), pages 276-284.
    42. repec:pri:indrel:dsp014t64gn18f is not listed on IDEAS
    43. repec:fth:prinin:30a is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sansani, Shahar, 2017. "Are the Religiously Observant Discriminated Against in the Rental Housing Market? Experimental Evidence from Israel," MPRA Paper 81424, University Library of Munich, Germany.
    2. Souleymane Mbaye, 2019. "Trois évaluations d’actions de lutte contre les discriminations," Erudite Ph.D Dissertations, Erudite, number ph19-01 edited by Pascale Petit, November.
    3. Koopmans, Ruud & Veit, Susanne & Yemane, Ruta, 2018. "Ethnische Hierarchien in der Bewerberauswahl: Ein Feldexperiment zu den Ursachen von Arbeitsmarktdiskriminierung," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2018-104, WZB Berlin Social Science Center.
    4. Ying Wu & Junhua Chen & Zhaian Bian & Hao Wang & Zhifeng Wang, 2020. "Housing, Housing Stratification, and Chinese Urban Residents’ Social Satisfaction: Evidence from a National Household Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(2), pages 653-671, November.
    5. Jessen, Jonas & Schmitz, Sophia & Waights, Sevrin, 2020. "Understanding day care enrolment gaps," Journal of Public Economics, Elsevier, vol. 190(C).
    6. Jaap Nieuwenhuis & Tiit Tammaru & Maarten van Ham & Lina Hedman & David Manley, 2020. "Does segregation reduce socio-spatial mobility? Evidence from four European countries with different inequality and segregation contexts," Urban Studies, Urban Studies Journal Limited, vol. 57(1), pages 176-197, 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. Flage, Alexandre, 2018. "Ethnic and gender discrimination in the rental housing market: Evidence from a meta-analysis of correspondence tests, 2006–2017," Journal of Housing Economics, Elsevier, vol. 41(C), pages 251-273.
    9. Paula Zamora & César Mantilla & Mariana Blanco, 2021. "Price discrimination in informal labor markets in Bogotá: an audit experiment during the 2018 FIFA World Cup," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-24, December.
    10. Auspurg, Katrin & Schneck, Andreas & Thiel, Fabian, 2020. "Different samples, different results? How sampling techniques affect the results of field experiments on ethnic discrimination," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    11. Alexandre Flage, 2018. "Ethnic and Gender Discrimination in Rental Housing Market, Evidence from Meta-Analysis of Correspondence Tests, 2006-2017," Working Papers 2018-04, CRESE.
    12. Sylvain Chareyron & Yannick l'Horty & Pascale Petit & Souleymane Mbaye, 2019. "Mesurer l’impact d’un courrier d’alerte sur les discriminations liées à l’origine," Working Papers hal-02333840, HAL.
    13. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    14. Hellyer, Joshua, 2021. "Homophobia and the home search: Rental market discrimination against same-sex couples in rural and urban housing markets," Journal of Housing Economics, Elsevier, vol. 51(C).
    15. Artavia-Mora, Luis & Bedi, Arjun S. & Rieger, Matthias, 2018. "Help, Prejudice and Headscarves," IZA Discussion Papers 11460, Institute of Labor Economics (IZA).
    16. Carol, Sarah & Hofheinz, Lukas, 2021. "Eine Inhaltsanalyse von Freitagspredigten der Türkischen Islamischen Union der Anstalt für Religion e.V," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2021-101, WZB Berlin Social Science Center.
    17. Jürgen Gerhards & Julia Tuppat, 2018. "„Boundary Maintenance“ oder „Boundary Crossing“? Symbolische Grenzarbeit bei der Vornamenvergabe bei Migrantinnen," SOEPpapers on Multidisciplinary Panel Data Research 996, DIW Berlin, The German Socio-Economic Panel (SOEP).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlsson, Magnus & Eriksson, Stefan, 2014. "Discrimination in the rental market for apartments," Journal of Housing Economics, Elsevier, vol. 23(C), pages 41-54.
    2. Rich, Judy, 2014. "What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted since 2000," IZA Discussion Papers 8584, Institute of Labor Economics (IZA).
    3. Hanson, Andrew & Hawley, Zackary, 2014. "Where does racial discrimination occur? An experimental analysis across neighborhood and housing unit characteristics," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 94-106.
    4. Flage, Alexandre, 2018. "Ethnic and gender discrimination in the rental housing market: Evidence from a meta-analysis of correspondence tests, 2006–2017," Journal of Housing Economics, Elsevier, vol. 41(C), pages 251-273.
    5. Mathieu Bunel & Samuel Gorohouna & Yannick L'Horty & Pascale Petit & Catherine Ris, 2016. "Discriminations ethniques dans l’accès au logement : une expérimentation en Nouvelle-Calédonie," TEPP Research Report 2016-08, TEPP.
    6. Auspurg, Katrin & Schneck, Andreas & Thiel, Fabian, 2020. "Different samples, different results? How sampling techniques affect the results of field experiments on ethnic discrimination," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    7. Hanson, Andrew & Hawley, Zackary, 2011. "Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 99-114, September.
    8. 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.
    9. Souleymane Mbaye, 2019. "Trois évaluations d’actions de lutte contre les discriminations," Erudite Ph.D Dissertations, Erudite, number ph19-01 edited by Pascale Petit, November.
    10. 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.
    11. Alexandre Flage, 2018. "Ethnic and Gender Discrimination in Rental Housing Market, Evidence from Meta-Analysis of Correspondence Tests, 2006-2017," Working Papers 2018-04, CRESE.
    12. Bertrand, Marianne & Duflo, Esther, 2016. "Field Experiments on Discrimination," CEPR Discussion Papers 11123, C.E.P.R. Discussion Papers.
    13. Sylvain Chareyron & Sammuel Gorohouna & Yannick L'Horty & Pascale Petit & Catherine Ris, 2019. "Seeking for tipping point in the housing market: evidence from a field experiment," TEPP Working Paper 2019-04, TEPP.
    14. Sylvain Chareyron & Yannick l'Horty & Pascale Petit & Souleymane Mbaye, 2019. "Mesurer l’impact d’un courrier d’alerte sur les discriminations liées à l’origine," Working Papers hal-02333840, HAL.
    15. Acolin, Arthur & Bostic, Raphael & Painter, Gary, 2016. "A field study of rental market discrimination across origins in France," Journal of Urban Economics, Elsevier, vol. 95(C), pages 49-63.
    16. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    17. Davíð Freyr Björnsson & Fredrik Kopsch & Gylfi Zoega, 2018. "Discrimination in the Housing Market as an Impediment to European Labour Force Integration: the Case of Iceland," Journal of International Migration and Integration, Springer, vol. 19(3), pages 829-847, August.
    18. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2015. "Immigration, Housing Discrimination and Employment," Economic Journal, Royal Economic Society, vol. 125(586), pages 82-114, August.
    19. Murchie, Judson & Pang, Jindong, 2018. "Rental housing discrimination across protected classes: Evidence from a randomized experiment," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 170-179.
    20. Mathieu Bunel & Yannick L'Horty & Loïc du Parquet & Pascale Petit, 2017. "Identifying preference-based discrimination in rental market: A field experiment in Paris," TEPP Working Paper 2017-06, TEPP.

    More about this item

    Keywords

    Discrimination; Spatial steering; Rental housing market; Field experiment; Correspondence test;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:35:y:2017:i:c:p:26-36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.