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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 the 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 among immigrants in the United States. While this effect is mediated by household income, our estimates also speak in favor of a direct language effect. Suggestive evidence further indicates that part of this effect may be driven by discrimination. Our results highlight the importance of host-country-specific human capital and, in particular, language proficiency for socio-economic assimilation in housing markets.

Suggested Citation

  • Luik, Marc-André & Steinhardt, Max Friedrich & Voss, Simon, 2025. "Language proficiency and homeownership: Evidence from U.S. immigrants," Journal of Housing Economics, Elsevier, vol. 68(C).
  • Handle: RePEc:eee:jhouse:v:68:y:2025:i:c:s1051137725000269
    DOI: 10.1016/j.jhe.2025.102067
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    More about this item

    Keywords

    Housing; Homeownership; Language; Immigrants; Assimilation;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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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